I've been working on this quietly in the background. Sorry about the initial video quality, but YouTube promises that the quality will get better as the video gets processed more. The back part of the version I uploaded to Vimeo was cut off.
I think that says it all, really. Donations via paypal to planetbeing at gmail.com. If you'd like to help, come join #iphonelinux on irc.osx86.hu.
Thanks to CPICH for reversing support, harmn1, posixninja, jean, marcan and saurik for patches, and last but not least, TheSeven for his work on the FTL.
Pre-built images and sources at http://graphite.sandslott.org:4080/pub/idroid/idroid-release-0.1a.tar.bz. Read the README. For generic openiboot instructions, there's plenty now that you can search for.
It should be pretty simple to port forward to the iPhone 3G. The 3GS will take more work. Hopefully with all this groundwork laid out, we can make Android a real alternative or supplement for iPhone users. Maybe we can finally get Flash. ;)
EDIT: Apparently on some iPhones, the installation of openiboot appears to be failing (THIS MEANS IT WON'T BOOT UP AGAIN). This is being investigated (I can't reproduce it on my own phone), but meanwhile you can just do a "tethered boot". In openiboot console, don't install but do !zImage, kernel, !android.img.gz, ramdisk, boot "console=tty root=/dev/ram0 init=/init rw" (after installing the other images to the second partition). If your phone won't boot up again, a DFU restore will get it back to normal. Take a deep breath. Calm down. There's nothing to worry about. :) We'll get this sorted out by tomorrow.
EDIT2: Fixed! It was previously only working on phones that used PwnageTool due to some assumption I made. Thanks geohot! Redownload the archive or just openiboot.img3