There’s an iPhone download available on the internet that is actually a trojan. After you install it, and when you try removing it, it seems to cause problems on the phone.
It’s called the iPhone firmware 1.1.3 prep tool, and people are being told it’s required before they can upgrade to version 1.1.3 of the iPhone. Do not install this application, just ignore it.
Update: it seems this utility was written by an 11 year old.