It looks like members of the XDA Developers forum have just found a way to gain root access to root of the T-mobile G1. There apparently is a loop hole in the PTerminal application that grants access.

Right now you can download the PTerminal application from the Android Market. We are told you can use it to start a telnet connection with your G1 and computer. Many call this a jailbreak because it is the only known term for many. Gaining root access in the G1 opens the door for so many new hacks and even a task manager to end applications. No word yet on if the loophole will be patched up or not
- Turn on your phone’s WiFi. This gives your phone an IP you can reach it at.
- Get to a command prompt on your device by using the PTerminal application from the Android Market. (adb shell does not seem to work with these instructions, telnetd does not start up)
- cd system
- cd bin
- telnetd
- netstat (get your phones IP)
- telnet into your phone’s IP from your PC
- you now have roo
[Via XDA]








The security that is there is to keep you from shooting yourself in the foot, not to keep you from tearing it apart if you want. Now that's Google's standpoint, I'm not sure what HTC would think of it, let alone t-Mobile or $CARRIER.
I can easily see t-Mobile being scared that this paves the way to people abusing their networks for uses other than those intended. I hope the phone companies will eventually take the "dumb carrier" attitude, where they just pass the data and charge you for overages. Right now however they definitely have the attitude that there are specific things you should be using their network for, and anything outside that is cause for alarm.
I'm eager to see how it all plays out. To be quite honest, the telecom battle is a far more interesting to me than the recent USA election. Who won anyway, the fake or the fascist? Which is which? Exactly.
I hope this wont be a patch war..
1. Connect phone to pc
2. run in tools folder adb shell
3. and then
mount -o remount,rw -t yaffs2 /dev/block/mtdblock3 /system
now you have /system mounted as rw. Please someone check it on phone.