iPhone creates nightmare in the minds of Hackers.

Hackers are working to unlock Apple Inc.'s iPhone, but the job appears to be more difficult than initially expected. They hoped that modifying the iPhone's bootloader -- the program that runs before the operating system is loaded -- would unlock the handset. But that turned out to be a dead end, as the bootloader code must be signed using a 1,024-bit RSA private key employed by Apple. Now, the hackers on iphone are working to create an assembler utility for the iPhone's processor. Once they have the ability to write programs for the iPhone, they can write one to unlock the handset. The iPhone is locked for use with AT&T Inc.'s EDGE network. Unlocking the iPhone will allow the handsets to be used with other operators, including carriers in Asia and Europe, where the phone is not yet available. While hackers have yet to unlock the iPhone, they have made other breakthroughs since overcoming the activation hurdle. For instance, hackers last week released a tool that allows users to install custom ringtones on the iPhone.