On your iPhone go to jailbreakme.com and it's a really quick and simple thing to do now. It used to be a right pain in the proverbial! All jailbreaking does is undo the restrictions that Apple have put in the software of the iphone. You can also get pretty much any app for free!
You usually have to access those apps from a third party website and not via the apple app store.
Not sure how this would affect any warranty claims if its still within warranty period as it changes the software.
My son has done it on his ipod touch. There are some downsides, like you can't change the backgrounds and the layout. I'm not sure what else but I'll ask my son and let you know.
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