Until today jailbreak term was more associated with iPhone and other Apple devices like iPad & iPod Touch but well you can now jailbreak windows phone 7. You heard it right, CheveronWP7 is the tool to jailbreak Windows Phone 7 which restricts access to private APIs making it difficult to build apps which can modify core part of Windows Phone 7.
The developers (or call them wp7 hackers) behind ChevronWP7 are well known Rafael Rivera, Long Zheng and Chris Walsh who have been reverse engineering Window Phone 7 OS from the day it was launched. The first release of ChevronWp7 may have some hiccups but should work on every smartphone powered by Windows Phone 7.
As of now the ChevronWp7 download link is down as well as release article has been removed from site. But thanks to Imran of iThinkdiff for this excellent finding which will be coming soon.