You can already run 3rd party apps and activate the new iphones with FW1.1.1, you can even unlock them with the commercial IPSF solution ($60-$100).. but a free unlock is just around the corner..

I am looking forward to use the Phone, not just use the "i" bit of the iPhone... ;-D

http://iphone.fiveforty.net/wiki/index.php?title=Main_Page

mmh, i like those green boxes..

http://www.tuaw.com/

application compability with 1.1.1
http://iphone.fiveforty.net/wiki/index.php/UIKit_Based_Applications

What they are not telling you though, is that this hack takes advantage of the tiff exploit in the mobile safari browser. This is something apple can patch very easily.. which means that the next hack will be the bigger out of the three challenges.. (1.0.2, 1.1.1 and 1.1.2).