It takes a screen shot capture every time you press the home key, and the security can be broken in 60 seconds, revealing all of your cached Safari browsing and Google Maps queries. A security expert who revealed the screen shot says that data that is a couple of months old can be retrieved.
http://blog.wired.com/gadgets/2008/09/hacker-says-sec.html
http://yro.slashdot.org/article.pl?sid=08/09/12/1442213
http://blog.wired.com/gadgets/2008/09/hacker-says-sec.html
http://yro.slashdot.org/article.pl?sid=08/09/12/1442213