It looks like a member of the Dev Team called pod2g has discovered a vulnerability in the booting mechanism for the iPhone, iPad and iPod Touch devices meaning that a jailbreak for iOS 4.1 is just around the corner.
The Dev Team have been producing jailbreaks for the iOS devices for a long while, but what makes this exploit extra special is it is hardware based, meaning that Apple cannot simply update the Operating System and fix it. Any of the aforementioned devices can (and will always be able to) be jailbroken.
This is a major coup for the jailbreaking community, as there has been talk of Apple clamping down on jailbreaking and making it much harder to do.
One thing that may hamper their future efforts is the advent of the Gaming community on iOS. This is something that has enforced legality in the gaming community in the past, as once a device has been detected as being exploited it could (in theory) be black listed from the gaming service. That said, if they had the ability to do that with games, then they also have that ability in Apps too, but as yet Apple have not played that card.
Some cynical people also believe that behind the scenes Apple don’t really mind the jailbreaking going on, providing the majority stay towing the Apple line.
Rumour has it the jailbreak will be with us within a day or so.