You might be in for a long wait. Everything I have read seems to indicate that there has been virtually no progress made in doing so.
If "jailbreaking" 1.0.2 and prior is like going to the moon, jailbreaking 1.1.1 is like going to another galaxy. The difference is astronomical. Jailbreaking, by the way, is merely a way to allow third-party applications, and modifications such as wallpapers, to be added to the iPhone. It is not nearly as dire as its name suggests.
I write this as it seems the consensus is that jailbreaking 1.1.1 is no big thing, and that it’ll be knocked out in a week or two.
Well I predict it won’t be for months, if ever.
The rumors you hear about a 1.1.1 unlock are just that: about an unlock. And indeed I do expect this to appear within a week or so. But that is merely dealing with using carriers other than AT&T, and unbricking currently bricked iPhones. It has very little to do with jailbreaking and using third-party apps.
The encryption used in 1.1.1, and the iPod Touch, is very strong. It cannot be brute-force attacked, and without the key we are pretty much dead in the water.
I truly hope I am wrong about this, but as of right now it’s not looking too good. So those of you on the fence about adding third-party applications, and are thinking of updating under the impression that a 1.1.1 third-party application solution is right around the corner, might want to reconsider whether to upgrade or not.
Time will tell.
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