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The symlinks exploit was developed by the iPhone Dev Team.
Before the discovery of the LibTiff Exploit, this was used on iPhone OS 1.1.1 to jailbreak iPhones from 1.0.2. However, this only worked for iPhones, as the new iPod touch could not run 1.0.2 and therefore could not use this jailbreak method. The symlink method involved symlinking /private/var/root/Media, the "jailed" directory that could be accessed via iPHUC, to /, and then downloading, jailbreaking, and reuploading the entire system partition from /dev/rdisk0s1.
This exploit was fixed in 1.1.2, when Apple introduced a check in the update ramdisk that prevented this from happening. The mknod exploit was discovered as a workaround to this fix.
