martycap, yes, anytime you need to change something on the iPhone you will need to jailbreak your phone using the multitude of different approaches that currently exist for each type of OS (see the 10 steps on the
www.hacktheiphone.com website.)
Regarding how the unlock will work, it appears that it is an application that you will have to install somewhere or other. Either the Application will install itself as AppTapp does, or you'll need to copy it somewhere on the phone via SCP and then launch it using, once again, another multitude of ways (see the site mentioned above).
My advice to you would be to jailbreak your phone and install AppTapp Installer/Launcher on your iPhone and then install SSH vial the Installer (AppTapp) and wait for this unlock to come out within the next few months....