Erica Sadun at The Unofficial Apple Weblog obtained jailbreaking code for the 1.1.2 update almost simultaneous with its release last night, and tests this morning confirm that it works for both the iPhone and the iPod Touch. The 1.1.2 update patched a flaw in the way OS X handles TIFF image processing, which was the way hackers gained access to the iPhone after the 1.1.1 update, and it also wiped out third-party applications just like before.
Back and forth and back and forth. One side trumps the other. This will likely continue at least until the SDK Apple has promised appears.