We all knew it was a matter of time before the latest update to the Playstation 3 firmware fell to the hacking community. The modders at PSJailbreak claim to have a break for the latest 3.50 firmware for the PS3 and are also claiming it will be good for any future versions as well.
The jailbreak is USB drive based and allows unapproved software, games, and even Linux installs on your PS3. PSJailbreak is also opening a sister site that will allow firmware downgrades for the PS3 at PSDowngrade.com. We'll see if their claims of future firmware breaking are true, but for now modders have a fun new toy for their kit.