I think there are plenty of iPhone unlock tutorial out there. Some only unlock SIM function, while some only unlock YouTube. So I mix them all in one tutorial so that everyone gets easy when they bought a new iPhone.

First, this instruction will write for Mac only. I am not sure whether I will have time to write one for Windows. I will try hard to do it.

Make sure you quit process of ‘iTunes’ and ‘iTunes helper’. You can check it using Activity Monitor. This guide does not guarantee it will work 100%. Do it at your own risk.

Step 1. Locate your iPhone firmware first. Make sure you updated to 1.0.2, and copy the file from your user name '~/Library/iTunes/ '. Copy the ‘iPhone1,1_1.0.2_1C28_Restore.ipsw’, change it to ‘iPhone1,1_1.0.2_1C28_Restore.zip’. Extract this zip file with StuffIt Expander or anything else.

Step 2. Download iNdependence 1.2.1a. The new version will work with iTunes 7.4.2. Choose ‘Activation’ first to activate the iPhone. You need to choose the folder that you extracted from Step 1. The process is automated and you don’t need to do anything. If you saw ‘can’t enter recovery mode’ or ‘ICCID’ error, just exit the program and run again.

Step 3. The iPhone should now be activated. Than, from the jailbreak, choose to perform the action. Again, the process is automated.

Step 4. Than, install SSH from the Tab. Click ‘Install SSH’, this time you need to do some work, follow the screen and it will be fine. We recommend you to ‘change password’ to enter a new password for accessing SSH server of iPhone. Type ‘root’ as account name.

Step 5. I have also chose to ‘customize’ and add new ringtones. It works perfectly after sending the ringtones that is m4a format. If you don’t know how to change mp3 format to m4a, click here.

Step 6. Connect your Mac and iPhone with Wi-Fi. Check your iPhone’s IP address. Than, download Fugu and start connecting by typing the detail like below. You can did it also by sharing your Mac connection to iPhone. (Guide will be provided for sharing Mac connection.)

Step 7. Download the AnySIM from here. Extract the zip file by right-clicking it, than select using BOMArchiveHelper.

Step 8. Upload the extracted file to iPhone using Fugu. Put the .app file under /Applications. Quit all program. Restart your iPhone now. (pressing Power button and slide to power off. Turn it on again)

Step 9. You will notice the icon on the Springboard. Install the SIM that you wish to use. Run the program as instructed. If you got ‘locate bite error’, try this.

Step 10. iPhone voicemail function may not be unlocked. So now, check your voicemail number. And press *5005*86*yyy# under Phone function.

where yyy stands for your voice mail phone number. If it was #123, than press *5005*86*#123#

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The iPhone is now fully unlocked with complete function. If you do want to install other third party native applications, than move on.

Step 11.Now, it’s time to install the native iPhone programs. Download the AppTap.installer first.

Step 12. Again, run it and follow the on-screen instructions. Make sure you choose the right firmware of iPhone.

Choose the right firmware

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Step 13. Now you will see the Installer icon on iPhone. Run it, make sure to install ‘Community Resources’ so that you get update for latest native apps. DO NOT INSTALL OpenSSH or it will cause you errors.

Install native iPhone applications easily.

Horrray! Now just choose anything you want to install. iPhone should now worked completely with fun. Sync it with iTunes and transfer the stuff to iPhone now.

Digg if you want to support me. If you don't want, just fine. Get happy with your iPhone.

http://digg.com/apple/New_Guide_to_h...h_iTunes_7_4_1