MaxConsole is reporting that the PS3 has been jailbroken using a USB hack. The hack allows games to be placed on the hard drive and played from there entirely. It is reported to work on the latest firmware.
Story and videos at MaxConsole: http://www.maxconsole.net/content.php?41841-PS3-hacked-USB-PS-Jailbreak-allows-gamers-to-copy-games-directly-to-harddrive&
The price they've got listed for the device is a bit hard to swallow however. :eek: