Works like a charm on 4.1. You can't access any other application, as the home button does nothing, no multitasking, no nothing.
But..... You can make calls with no problems, search/edit a users address book and if you are hooked up to an exchange server, search the GAL on the exchange server.
If a user has an email address associated with them you can press "share contact" and then you have full access to the email client of the user. Email whoever you want, it'll work.
I can see this getting fixed very quickly, What good is enforcing a lock on a phone via exchange if it can be bypassed so easily?
Although of course, this all requires a person to have physical access to your phone.
Can anyone confirm that this still works on the latest 4.2 beta? I would assume so for the time being at least.