At one point, the video shows the unit even signing into PSN. However, please note that this is the SP-INT network, which is for developers. It is not connected to the retail NP network, which retail units typically use. Which means, you wouldn't be able to play online games with your friends still.
A project to turn a retail PS3 console into a full TEST unit.
Major progress has been made, you be the judge from the video =)
I will have another video shortly showing another Major breakthrough as I was uploading this video.
Then GeoHot comes out with a much easier way... but that keeps an exploit in our pocket for later use. I see some of you are already asking about re-enabling the usb exploit in 3.42+ firmwares, we have already thought of that but currently won't be working on that until Rebug is finished.
Oh and Happy New Year =)