Hackers at the iPhone Project are developing a full firmware hack for the iPhone that enables the installation of unapproved applications and use of the device on networks other than Apple's approved partners.
The software, iPhone PWNED, was due for release today but has now been delayed by a week, pending legal questions and the simultaneous release of a Windows version of the software.
Additional features promised by the group behind the release include the ability to ramp up processor speed, and users will "eventually be able to backup your entire phone and restore to a state exactly the way you like it, restore straight to jailbroken state with installer, or even potentially install other operating systems to your phone," the developers claim.
The software will also unlock or jailbreak an iPhone, the developers claim.
The iPhone Project's full claims for the software and a video demonstrating it in action are available here.