iPhone already hacked
Yesterday, Jon Lech Johansen (DVD Jon) reported that he successfully activated the iPhone by bypassing iTunes' subscription process, without having to sign on to a two year contract with AT&T. This allows him to use the iPhone in his homeland (Norway), one of many countries where the iPhone is currently unavailable.
Using his method, most of the phones features aren't available, however, using the iPhone as an iPod and WiFi-enabled device is fully functional. Whilst this is one step closer to a completely unlocked iPhone, it still does not have the capability to register itself with other networks (such as T-Mobile or Verizon Centennial Wireless), but where there's a will there's a way.