Geohot just released the LimeRa1n jailbreak for iOS 4.1 (LimeRa1n download here). LimeRa1n will jailbreak the iPhone 3GS, iPhone 4, the iPad, the iPod Touch 3G and 4G. So far it is Windows only but a Mac and Linux version are in the work.
Geohot claims he released LimeRa1n today to get the Chronic Dev Team to do the "right thing". Basically Geohot is saying "F U" to the whole jailbreak community....