The iPhone Dev Team managed to update their iPhone jailbreaking tool pretty quickly after the release of the iPhone Software update 2.1 on Friday.
The new PwnageTool for iPhone firmware 2.1 works with iTunes 8 without any patches.
The new PwnageTool is not tested yet with the new iPod touch 2G.
Despite the amazing success of the iPhone App Store (100 million downloads in 2 months) there is still also large interest in homebrew iPhone apps and playing outside of Apple's yard. The latest rejection of an App to the iTunes App store by Apple might actually even grow that segment.
More details and download are available on iPhone Dev Team site.