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A software-based jailbreak to allow iPhone users to run third-party applications directly on their smartphone with firmware update 1.1.3 installed is now available.

As an upgrade, it requires you have already jailbroken earlier iPhone updates, 1.1.1 and 1.1.2. The new jailbreak works for the iPhone only, not the iPod touch, is only available for Windows users right now. A version for the Mac is expected to arrive soon, however.

See here to obtain the 1.1.3 jailbreak and see detailed instructions on how to install it and an important warning

What's a jailbreak?

The iPhone supports two types of applications, native and so-called Web 2.0 apps.

The latter are accessible only through the iPhone's Safari web browser, but they run from a remote location. This is as opposed to native software, which runs directly on the iPhone itself.

Regrettably, the only way to be able to do this right now is to open your iPhone up to third-party software through a hack known as a jailbreak, which can be a risky endeavor.