Well, we knew that someone would do it eventually, and the ones who did it were the folks over at wickedpsyched.net. What they did was take the popular Mac OS X torrent application, Transmission, and ported it over to the iPhone's ARM processor. As of now, it doesn't have a GUI, but it does work. All you need to do when you are in Terminal on the iPhone is ./transmissioncli (name of torrent) and it starts downloading. If you don't feel comfortable with Terminal you might want to wait until someone sticks a nice GUI on it.
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