I’ve been playing with the idea of jailbreaking (that is, hacking to run whatever applications you see fit) on my 16GB ipod for a while now; I did try it a few weeks back, but the whole process was quite inelegant, and didn’t 100% work.
With the older methods, I used to get a sort of negative screen when the device came out of autolock, and the whole thing became essentially unusable until you powered off and on again. I put it down to a slight hardware revision (as this was a slightly newer 16GB model) which must have been causing the issue, as a friends slightly older, but otherwise identical ipod had no issues.
Enter ZiPhone. This piece of software really is impressive. Unlocked/Jailbroken ipod within about a minute, and with one click.
No “remember to turn autolock off before you downgrade to 1.1.1” etc type warnings. Great stuff.