I havent covered too many iPhone Hacks, but this one sounds like its worth talking about. Its called PWNAGE or PWNED (not sure which is the actual name), created by the iPhone DEV TEAM (creators of another popular iPhone unlocking software). The difference in PWNED and jailbreak or other solutions is that this allows you to do a lot more with the Iphone, even add your own OS if you want (or know how).  The best description of all you can do with it is easiest explained by this quote from the DEV TEAM (taken from theiPhoneproject.org)

theiphoneproject: Can you give us an overview of the process?

The Devs: In all honesty, it’s quite simple. This is the first release of Pwnage, and the process of building an IPSW is thus far only supported on Mac OS X. The first thing to do is make sure you have the Official IPSW of the firmware you are running (eg. If you are running 1.1.4, download 1.1.4). Now open the Pwnage tool, and click “Browse .ipsw” and browse to the firmware file that you just downloaded. Next you click the “iPwner” button, and watch as PWNAGE patches the iPhone bootlader, making it possible to circumvent any code signing checks. After this, your iPhone will reboot. As the iPhone reboots, exit the Pwnage app, and reopen it.

Here is where the magic happens, once the phone has rebooted, click on “IPSW Builder,” and you are presented with a list of the building options (jailbreak, unlock, etc..) including the all new “BootNeuter,” the ultimate iPhone unlocking solution. Once you have customized your IPSW, hit OK and let Pwnage build the restore file. Next we head to iTunes, option+click on the restore button, and navigate to the custom ipsw that you just created,. Hit OK and we’re done! iTunes will restore the iPhone to the state of your choosing (Be it jailbroken, unlocked etc…).

 

Theres also a video going through the process that looks like its pretty easy to do. The most interesting thing about PWNAGE is that you can restore your iPhone back to the official firmware whenever you want, in case you have to take it in to an Apple store or something. Right now the software is for Mac only and was suppose to release today, but they pushed back the release and will be adding Windows support amongst other features. Check out the video below.