iModZone has exposed a new exploit in iOS 4.1 & 4.2 (beta) which allows non-jailbroken devices to install an app called ‘iPA God’ The app will enable users to install cracked apps without the need to jailbreak their iPhone, iPod touch or iPad. The website plans to charge under $20 for this app and distribute it via ad hoc.
They recently posted a youtube video which shows the app in action:
We strongly oppose the concept and act of installing cracked app store applications and hope that Apple fixes this exploit soon.[9to5Mac]