PSX-scene.com reports that the first PS3 modchip has been tested and confirmed working. Working off of a USB dongle, It appears to be relatively user friendly and claims to not void your warranty, and online gameplay works (at least for the time being).

Quote by BBC:

PlayStation 3 update targets hardware hacks

Sony has closed a loophole that allowed users to run software that enables pirated games to be played on the PS3 console.

The update blocks the PSJailbreak and PSGroove applications.

Mathieu Hervais, one of the developers behind PSGroove, told BBC News that it was "safer not to update" if users wished to continue using the hacks.

Sony won a court order in early September banning the distribution of the PSJailbreak dongle.

The update is the latest step in Sony's ongoing battle against the commercial dongle - PS Jailbreak - that allows users to play pirated software. It also targets open source code, known as PSGroove, which allows homemade games to be played on the console.

While the PSGroove software was not originally intended to allow the playing of pirated games, as PSJailbreak does, it has already been modified by other hackers to permit the practice.
Mixed response

It is the continuation of a cat-and-mouse game between hackers and the electronics giant, which started when PSJailbreak first appeared for sale on website.

see article for the rest

In an update to the court action against the owners of PSJAILBREAK, I have gotten all the possible recent court documents that are available right now at much personal cost to myself (money for documents), but I thought it would serve the public good to see what the Sony legal dogs are up to.

In these boring legal filings by Sony, it now covers not just PSJailbreak, but also names PSGroove, PSFreedom, OpenPSJailbreak, and they have filed printouts from various blogs, forums, and sites like PS3NEWS with comments and tutorials people have been writing up on how to use these various programs. They even mention of course the phone ports & TI84 calc. hacks.

Sony is using this information, to get the courts to order up faster service, to force the various ISP', Domain Register's, and Web Hosting Services to give up the personal info on their clients so that can serve more court papers on those people, and issue DMCA takedown notices to shut down various sites.

So for the Judge has only granted one order so far, this one is directed to YAHOO! to within 5 business days to turn over all the information they have on a "vladgazoune@yahoo.com", all IP's he used to access his mail, his personal info stored by Yahoo, his email of course, and other logs.

This E-Mail address is the one that was used to rent the mail-drop box in Texas used by http://shoppsjailbreak.com as their virtual office for orders, shipments, registering the domain name, etc.

Recently, that above name site which also goes under the company name of Zoomba stop using the ".com" domain and now is operating under a http://shoppsjailbreak.net domain. -- Plus also the http://psjailbreakcanada.com site which seems to point IP wise to the older site, has suddenly been changed to DOJ/IPR/ICE notice that has been used in the past for "Torrent/Movie" site take-downs!

Anyhow, here is all the public court documents you can read thru them now, and see just what SCEA has been printing out about yourself online, they are asking the court they need to findout the true identify of everyone that sells, makes, offers for sale, or even has just knowledge of the real people behind any project called PSJailbreak, PSGroove, OpenPSJailbreak, PSFreedom.

Don't be surprized if the next few days, you see less sites online, or you find yourself answering the door to a person serving you a Summons to Appear! -- The good reading stuff is the PDF's called Exhibit or Exhibits!