First of all this is my first time with hacks like the ultrasn0w, so a few questions are popping in my mind regarding the way it works.

I live in india and the iphone 3GS [it has not released yet, but I dont wanna wait], will be overpriced for sure, so I am getting it from my parents in Amsterdam, The Netherlands.

Now I've watched the tutorials on HOW TO USE THE ultrasn0w, in that process we add the source URL: "repo666.ultrasn0w.com" and it downloads the packages.

My question is: "are those packages being downloaded using the internet connection on the phone or is it using the internet connection on my Computer".

[Okay to make it simple: "Who needs to perform the "ultrasn0w" hack my parents as soon as they buy it or can I perform it when I come back to india"]

*I think T-Mobile is selling the 3GS, has anyone here in the forums from Netherlands performed the unlock successfully?
*What does the "Activation" refer to? I've seen it on the webpages, will it affect the functioning of the HACK?

The internet connection on the phone.

Regarding to the iphone terminology, please read this and use the search function: iSeminar - The Beginner's Guide to iPhone Hacking [UPDATED]

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You need internet connection to download ultrasn0w (preferably wifi as normal data connections like GPRS / EDGE might be slow. There are two things jailbreaking and unlocking

1) Jail breaking

Download latest version of readsn0w
Windows http://xs1.iphwn.org/apps/redsn0w-win_0.8.zip
Mac http://xs1.iphwn.org/apps/redsn0w-mac_0.8.zip

First you need to download firmware 3.0 (because readsn0w will recognize 3.0 and not 3.0.1)
Appended link you can download correct firmware.
iPod and iPhone Firmware Download

Run readsn0w and point it to firmware 3.0
Select Cydia or ICY and not both as it will give ‘dependency error’
Correctly follow the onscreen instructions
After final reboot you will have an application Cydia

2) Unlocking
Launch Cydia
Select Manage
Select sources
Select add
Now add repo666.ultrasn0w.com
Then cydia will verify the repo and then launch the Ultrasn0w application.

A final reboot.

Also refer iclarified you will have good tutorials on this

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Thanx * Rgds,
Girish Kumar

Thanks to you all for clearing my questions. Keep it up guys.