I just found this info hope can help....

Researchers have discovered a way to take complete control over an iPhone merely by sending special SMS messages and demonstrated it on my iPhone at the Black Hat security conference on Wednesday.
Although an attacker could exploit the hole to make calls, steal data, send text messages, and do basically anything that I can do with my iPhone, the researchers were kind and merely rendered it temporarily inoperable.
Here's what happened: While I was talking on the phone to Charlie Miller, his partner, Collin Mulliner, sent me a text message from his phone. One minute I'm talking to Miller and the next minute my phone is dead, and this time it's not AT&T's fault. After a few seconds it came back to life, but I was not able to make or receive calls until I rebooted.
My iPhone is not jailbroken and it is running iPhone OS 3.0.
The attack is enabled by a serious memory corruption bug in the way the iPhone handles SMS messages, said Miller, a senior security researcher at Independent Security Evaluators.
There is no patch, despite the fact that Apple was notified of the problem about six weeks ago, he said. All current versions of the iPhone operating system are affected.

Apple released a patch for this days ago. This has been all over the news and these forums. You can do a forum search and find many threads on this.
3.0.1 is the latest software update that addresses this very issue.
http://www.intomobile.com/2009/07/31/apple-patches-iphone-sms-text-bug-with-ipho ne-os-301-update.html

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