NIST hasn’t even published the complete and proper candidates, but there’s already a full break (second pre-image) of one of the candidate hash algorithms in the SHA-3 competition, pretty exciting, huh? The “WaMM” hash algorithm is the first to fall, see here for more info. There’s also been an attack on another of the submissions, EnRUPT. A list of some (I say some, there’s quite a lot on the list) of the candidates can be found at the SHA-3 zoo.
In this type of process, such a complete break so early on is certainly a good indicator that the process is working as intended – and getting good involvement. It also serves as a stark warning to those who would use a home-grown crypto scheme in a commercial product without full peer-review of their algorithm, the consequences of which are no less apparent than the failure of the ubiqutous Mifare classic, used for example in the Oyster card in London.
UPDATED 12th April 2010: Added  extra meaning in title.