This truly looks like a definite top 5 iPhone Application. The Independent Games Festival grand winner for 2D Physics PC puzzle game finally heads to the AppStore!

Here is a gameplay video of Crayon Physics Deluxe — Looks awesome!

From dothehudson.net:

It first became a phenomenon in the beginning of 2008 in YouTube websites around the globe. The Grand Award winner for 2D Physics PC puzzle game in “INDEPENDENT GAMES FESTIVAL” is finally here for iPhone/iPod touch!

Paint a picture by dragging your finger across the screen…
Presto! The picture becomes an object and drops to the bottom.

Just move the ball to the Star to clear the stage!

- Video Directlink: youtube.com
- Source: dothehudson.net

Digg It!

Update: It appears Wal-Mart did start selling Apple’s iPhone today.

8GB: $197USD
16GB: $297USD

Buy your iPhone today at walmart.com

Wal-Mart will sell the iPhone for a whopping… $2 less than the regular price with a two-year commitment (contract). $197USD for the 8GB model or $297USD for the 16GB model.

- source: tech.yahoo.com

pytey, musclenerd, and planetbeing from the iphone-dev team gave a presentation at the 25th Chaos Communication Congress (25C3) in Berlin December 27th

Proceed with caution, the video is very technical and it may cause your brain to explode. — The video is mostly for those with technical or developing skills.

Even if you don’t have any technical or developing skills, this still may be interesting for you. It’s nearly an hour long so watch when you have time to do so. Enjoy.

- source: video.google.com

Digg It!

Remember when the iPhone 2G (First generation) released and you could buy it in-store and take your beautiful new iPhone home and activate it right from the comfort of your own home? And then Apple and AT&T didn’t allow it and everyone complained and caused major havoc at many apple stores and at&t stores. Well, now at&t is allowing people to buy iPhone 3Gs from at&t’s website and have it shipped right to your front doorstep!

In addition to being able to purchase an iPhone 3G from at&t’s website, you’ll get overnight shipping if you order before 4PM Central Time.

Note: 2-year contract is required to purchase an iPhone 3G from At&t’s website.

Buy an iPhone 3G from AT&T’s website Here

The Boy Genius Report reports, Wal-Mart is to sell 4GB iPhones for $99 with a 2-year contract December 28th. Boy Genius Report is not entirely confident that this is true.

When Apple originally introduced the iPhone, it shipped in 4GB and 8GB models. A couple months later, Apple discontinued the 4GB model completely and dropped the price of the 8GB model. Apple, now, sells iPhones for $199 (8GB) and $299 (yup, you guess it, 16GB) with 2-year contracts. A 4GB iPhone model for $99 does make sense, but will it happen? $99 will be aggressive and will sell alot more iPhones. Only time will tell. Stay Tuned!

Update: PwnageTool has been updated to 2.2.1 — This update fixes the bug that is related to ‘Simple Mode’.

PwnageTool 2.2.1 Download (Mac OS X only)

From iPhone Dev Team’s Blog:

• Locked iPhone 3G

If you are using your iPhone with one carrier and have no interest in the possibility of an iPhone 3G unlock in the near future then just restore or upgrade to 2.2 using iTunes and use QuickPwn to Jailbreak and add Cydia and Installer.

• Locked iPhone 2G (1st Generation)

Restore your iPhone 2G with iTunes then run QuickPwn to do the magic, ‘nuff said.

• iPod Touch 1G (Original iPod Touch)

Update to 2.2 with iTunes and run QuickPwn.

• iPod Touch 2G (New iPod Touch)

Sorry, no support at this time.

You can download PwnageTool and Quickpwn from our iPhone Downloads section.

PwnageTool 2.2 Download (Mac OS X only)

Quickpwn 2.2 Download (Mac OS X)

Quickpwn 2.2 Download (Windows)

- source: blog.iphone-dev.org

Apple has launched a new site, called “iPhone Your Life,” which allows you to see applications as they relate to different parts of your life.

From Apple:

Once you own an iPhone, you discover that it’s more than a phone. It’s a way of life.
Take a look at some ideas to help you get the most out of your iPhone, wherever you go.

Apple has sections for: Around Town, World Travel, At Home, Getting Things Done, and Fun and Games. They have staff picks, top downloaded apps, and descriptions of featured applications.

- source: Apple.com

That’s right! Apple has surprisingly released firmware 2.2 in the middle of the night.

This update includes the following:

• Enhancements to Maps
  - Google Street View
  - public transit and walking diretions
  - display address of dropped pins
  - share location via email
• Enhancements to Mail
  - resolved isolated issues with scheduled fetching of email
  - improved formatting of wide HTML email
• Improved stability and performance of Safari
• Podcasts are now available for download in iTunes application (over Wi-Fi and cellular)
• Decrease in call set-up failures and call drops
• Improved sound quality of visual voicemail messages
• Pressing the Home button from any Home screen takes you to the first Home screen
• Preferences to turn on/off auto-correction in Keyboard settings

You may download the update via iTunes but iPhone-Hacks urges you NOT to update if your iPhone is jailbroken or unlocked. Wait till the masters of iPhone hacking, iPhone DEV Team, come up with a solution to jailbreak and unlock this firmware version.

We’ll have this update available on our iPhone Downloads section as soon as possible!

Update:
iPhone 3G 2.2 ipsw Download From iPhone-hacks

iPhone 2G/EDGE 2.2 ipsw Download From iPhone-hacks

Download iPhone 2G/EDGE Firmware 2.2 From Apple

Download iPhone 3G Firmware 2.2 From Apple

This is a quick tutorial to help you with iPhone tethering for your PC or Mac. Please note this is against AT&T’s data usage policy. You could get charged with usage fees. Use at your own risk. You’ve been warned.

1. Jailbreak your iPhone 3G (or first gen iPhone running the 2.0 software). Install OpenSSH via Cydia. (OpenSSH gives you command line access to your device)
2. Create an ad-hoc network on your computer. On Macs, just click on the Wi-Fi icon in the menubar and select “Create Network.” On Windows, set up internet connection sharing.
3. Join the iPhone to this network via Wi-Fi as usual.
4. On the iPhone, under Settings->Wi-Fi, select the network you have joined to view connection details. Write down its IP address.
5. From the Mac’s Terminal, run the following command:
   ssh -ND 9999 root@IPHONE_IPADDR
   but replace IPHONE_IPADDR with the IP you wrote down in step 4. Login. The default root password is alpine; you should really login normally over SSH and change this.
   Windows users: the free SSH client Putty will allow you to accomplish this same step. Don’t install Cygwin+OpenSSH as some suggest, that’s massive overkill.
6. Configure your browser to use a SOCKS5 proxy server at localhost:9999.
7. Surf.

Again, this is against AT&T’s data usage policy. Use at your own risk!

- source: lifehacker.com