It would appear that the iPhone has been activated on a non-AT&T network. The haxors are hard at work, bringing cool features to your new $600 toy! Current roadmap:

• Break DMG Password *COMPLETE*
• Break Activation *COMPLETE*
• Download a Faked dmg
• Unlock Phone
• Run Third Party Applications
• Allow DUN/Tethering
• Remove IMEI Transmitting
• Enable Disk Mode

The broken activation does not mean that you can use the phone on any network. It does mean, however, that the iPod and other non-phone features can be used without service. The cool stuff happens when they figure out how to unlock the phone. I give it two more weeks. Oh and added cool factor: one of the devs in the group is from the ATL!