There's a bit of controversy surrounding a TUAW report that a British iPhone user was able to get an AT&T SIM to adopt a local Vodafone number, enabling him to use the iPhone outside the US with an American SIM.

Apparently, the user was excited about the iPhone and got it even though he could only use it with AT&T activated by iASign. Realizing the futility of having his US number in the UK, he went to the Vodafone store and had the people there add the phone to his account. Amazingly, the Vodafone-enabled AT&T SIM worked great on the iPhone. The screen flashed AT&T but the number was localized and SMS was working well.

According to TUAW, users in IRC have been discussing how this could have happened and if there was any truth in it. Most chatters say that it shouldn't have worked because of regional and technical restrictions. Apple has not commented on the topic so far.

TUAW reports that they tried to have the same procedure done in Canada but the Rogers store there would not touch the SIM. We'll keep you posted for more on this issue and other exploits as they come.