Hi: FYI this is my first post here. Given that there's no "loss coverage" for the iPhone, I decided to put a passcode on my handset; I figured that at least it would make it a bit harder if some crook swiped my iPhone. This AM I discovered the new iPhone patch and applied it to my phone. However, in the process of upgrading, I found a possible "hole" in the passcode lock. The way it's designed, iTunes SHOULD not allow a "foreign" iPhone to connect if that handset has a passcode. But I found a way for a crook to bypass the iTunes lockout ... and as a result, be able to access the victim's iPhone -- as well as the handset's activated SIM card and wireless service. How? There are two ways: 1. The simplest is to enter iPhone Recovery mode (hard boot with the yellow arrow); or 2. Install Jailbreak on the handset. After that, when you connect the iPhone to a CLEAN copy of iTunes, you can then connect. Once connected , all the thief has to do is perform a full system restore. When the restore is complete, iTunes will prompt for a new activation. HOWEVER ... since the SIM card is already activated, all you have to do is leave the iPhone connected for less than a minute. Eventually, AT&T's towers will see the already-activated SIM and "re"-activate service. FYI I tried this on three PCs that had NEVER had iTunes installed. PC 1 saw the passcode lock and refused to connect. PC 2 connected to an iPhone in the middle of Recovery mode. PC 3 connected to a passcode-locked iPhone with Jailbreak installed. I don't know if a hole like this CAN be fixed, short of the passcode being written to a chip. Bottom line: the passcode isn't invulnerable. I welcome any thoughts ... or better yet, any suggestions on how to secure my iPhone better (short of keeping it in a safe!). For now, I've UNlocked my own iPhone; I'm sure the crook that MAY steal my handset will have read this post ... so why go through all the added keystrokes?!?