Team ICE, a while back, discovered that they could crash a Sony PlayStation 3 using a well-crafted TIFF (Tagged Image File Format) file loaded in the Sony PS3’s XMB. The team have now released that same TIFF to the public yesterday, in the hopes that someone will be able to find a way to run unsigned code. The exploit is confirmed to work on all firmwares including the current version (Firmware 2.10).
The TIFF exploit causes a heap overflow and will permit injection of simple code if the background workings of the PS3 are known. A similar exploit unlocked PSP Firmware 2.00 to the world of homebrew a long time back, and it is possible that this exploit may just unlock the PS3, which has otherwise been hack-proof so far. Whether this exploit leads to ISO loading remains to be seen. The release of a "Hello, World" application would prove that this exploit works.