LLXX, on Jan 25 2007, 04:50 AM, said:
Long live the Chinese!
Edit: I bet the same thing is going to happen to SHA-2 in a short while

Who cares? They're replacing SHA1 primarily as a preventive measure, as one day it might be too risky (with computing power being cheaper and such) - and that it's rather trivial to replace it with another HMAC anyways.
SHA1 is not totally broken, it's just somewhat weaker than expected. It still takes 2^53 attempts to get 2 totally random strings with the same hash, and for most purposes, that random string is useless. With a 10M$ computer (not something everybody has), it would still take like 4 months. And again, in most applications, if some hacker has access to your hashes, they already have access to your whole database, and you have far more serious issues on your hands than the hashes not being the strongest... The real place where a somewhat random string (collision) would be useful is for file hashes (then again, who would spend 4 month's worth of processing time on a 10M$ computer to modify on of your files and ensure the hash stays the same?) -- where MD5 is still widely used anyways, despite of it being a really weak hash, that can be broken in a few days (or few hours with a bit of luck) on any home PC.
Even if there were weaknesses in SHA-2 (not unlikely), it still wouldn't matter. SHA-256 has 96 more bits than SHA-1 (more collision resistant). If it is 2^48 more computationally intensive to crack, it would take 281 474 976 million years on that same 10M$ computer (way longer than earth has existed for). Even if they find some flaws and that it can be cracked a few thousand times faster (like for SHA-1) and that computing power got a thousand times cheaper, it still wouldn't change the big picture much. If you're really paranoid, then go for SHA-384 or SHA-512...
SHA-1 is still perfectly fine for most purposes (for now at least), although there's no real reason not to use something stronger on new systems (no more work required).