Preliminary iPhone 1.1.1 'Jailbreak', Ringtones Soon?
When Apple released the iPhone 1.1.1 update, they broke a number of 3rd party hacks for the iPhone. This included all 3rd party applications as well as ringtone applications such as iToner.
TUAW reports that the iPhone Dev team has found a way to "jailbreak" 1.1.1. "Jailbreak"-ing is the process that allows 3rd party developers to deploy their applications to the iPhone. This accomplishment paves the way to re-open the iPhone to 3rd party apps.
The technique is very preliminary and not yet ready for public release, and will likely require developers to recompile many of the existing iPhone applications.
Meanwhile, iToner 1.0.3 will be undergoing beta testing shortly, which should re-introduce Ringtone support into iPhone 1.1.1.
Ongoing iPhone coverage at macrumors.com/iPhone
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