Since the release of iOS4, Apple's new OS for the iPod Touch and iPhone, users have been eagerly waiting for hackers to release a jailbreak tool.

Comex, a well known iPhone hacker and developer of Spirit jailbreak, has revealed that the jailbreak for iPhone 4, iPhone 3GS (net bootrom) and iPod Touch 2/3G is ready.

However due to the soon to be released update for iOS4, the jailbreak tool will probably be released after the update in order to make sure it still works after Apple's attempt at patching the loopholes in their devices through the updates to iOS4.

Here is what musclenerd (another iPhone hacker) has to say about this:

xfsasx jailbreak for all devices at 4.0 is already handled by upcoming comex release so, good time for iphone4 unlock stuff

Source