Update : iPhone 3GS is jailbroken and unlocked @ http://ilikemyiphone.com/wordpress/2009/07/03/jailbreak-and-unlock-iphone-3gs-using-purplera1n-by-geohot-simplest-jailbreak-tool-ever/
Geohot has done it yet again! He managed to break the chain of trust which means he broke into Apple’s territory on the iPhone 3G S. As soon as the iPhone 3G S is jailbroken, that signals an unlock solution in the waiting since both the 3G flavors of the iPhone share a similar baseband 4.26.08! The ‘S’ in 3G S which stands for Speed can now be experienced by the entire jailbreak community soon!
p.s : Geohot hints at a new site purplera1n.com, the chase begins!