The iPhone dev team has just released ultrasn0w to Cydia and Icy. Ultrasn0w can unlock your iPhone 3G running on firmware 3.0. iPhone 3GS is NOT yet supported.
A word of caution for T-Mobile USA customers – disable 3G before using ultrasn0w. Here are the steps:
That should do it. Enjoy!
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A step by step guide to upgrade and unlock your iPhone 2G to firmware 3.0 using redsn0w.