As Apple Asserts iPhone Control, Hackers Fight BackAppearing at a London Apple store for the UK launch of the iPod, Steve Jobs was asked about the rash of solutions for "unlocking" the iPhone, software and procedures that allow customers to use the device with a carrier other than AT&T.
"It's a cat-and-mouse game," he said. "We try to stay ahead. People will try to break in, and it's our job to stop them breaking in." Jobs brought down the hammer last week with firmware update 1.1.1, which turned cracked iPhones into very handsome bricks. More importantly, the upgrade disabled hundreds of third-party applications that users had downloaded.
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So far according to this report you can install the previous version of the iphone with itunes ver. 7.3. This will allow you to use the Wifi and ipod features on the iphone. But the phone calling isn't available. Lets see how long it takes for hackers to come up with cracks for the new software version on the iphone. stay tuned for update.