As promised yesterday, MuscleNerd and the rest of the iPhone dev team have Jailbroken the iPhone 3.0 OS.  You might want to fast forward half-way through the video before you see anything good.  The short answer, however: iPhone 3.0 is jailbreakable and will be shortly after launch.

http://qik.com/swfs/qikPlayer4.swf

Try to be patient.  Do as we say, not as we do.

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