The iPhone DevTeam (http://blog.iphone-dev.org/) have officially confirmed the completion of the iPhone 3G unlock, dubbed ?yellowsn0w.?* This is to be built into PwnageTool, QuickPwn and BootNeuter in a way that first gen iPhone users are already familiar with.

The software unlock does, however, require that the user has a jailbroken iPhone 3G running a Baseband version equal to or lower than 2.11.07.* Baseband versions higher are currently not supported.* It has been suggested that in a few months, the possibility of downgrading Baseband firmware may arise.

On another note, the Team have also gone on to say that they believe the recent Mac OS X 10.5.6 update does not intentionally disable recognition of a device in DFU mode. They have offered three possible fixes, to be outlined below:

1. Replace the following plugin kexts from within IOUSBFamily.kext with the ones from 10.5.5 and then rebuild kextcache.

/System/Library/Extensions/IOUSBFamily.kext/Contents/PlugIns/AppleUSBHub.kext

/System/Library/Extensions/IOUSBFamily.kext/Contents/PlugIns/IOUSBCompositeDriver.kext

2. Use a USB hub in-between the DFU device and the Mac and insert/reinsert the iPhone?s USB cable.

3. Use a PwnageTool created .ipsw on Windows.

There is also word that work on the iPod Touch 2nd Generation jailbreak may begin sometime in the New Year.

Taken from my blog at http://www.appledailytimes.com/

Official Post at http://blog.iphone-dev.org/

My understanding and hope is there will be an Unlock application available via Cydia. This way iphones already jailbroken and meet the baseband firmware requirement can simply download the app and run the unlock. (No need to run pwnagetool / quickpwn again on an already jailbroken phone)

You have big hopes =)

That's a great idea, I hope you're right

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I think I'm right and my hope came true :-). From the Dev Team's blog:

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This is really awesome, thanks for the great news!