The Dev Team did it yet again! The cat and mouse game is on! All iPhone 3G owners (no matter what firmware you have) can now unlock their devices!

Lets get started with a step by step guide (It will be a short one this time around!)
1) Update your iPhone 3G to 3.0 . You have two options here :

redsn0w (DIY Quick!)
Pwnage Tool (Download the Custom Firmware 3.0 if you want to Jailbreak directly without messing with other tools)

Redsn0w is a revolutionary way to jailbreak, activate, unlock an array of Apple’s devices based on iPhone 3.0 firmware. Devices like iPhone 2G, iPhone 3G, iPhone 3GS, iPod Touch 1G/2G can easily be jailbroken, activated and unlocked (iPhone 2G – Automatic, iPhone 3G – Manually via Cydia & Ultrasn0w).
If you don’t want to go through the following steps and you just want the real deal, follow this guide rather wherein you can download the custom firmware file which should do the job for you!
The tool itself is so neatly packaged …

UPDATE : A new version of custom firmware 3.1 for iPhone 2G/3G/3GS is now available here!
Free your iPhone 3G 3.0 from Apple’s chain by jailbreaking your iPhone which provides you with various customization features and even unlock feature which Apple and your official carrier hate! There are various options available to achieve this level of customization on your iPhone such as download firmware files, bootloader files, jailbreak/unlock tools such as Redsn0w/Pwnage or QuickPwn.

If you are not the one to download all the various files and just want the ultimate result, …

Apple released iTunes 8.2 just in time for a probable iPhone 3.0 release at WWDC ’09. While iTunes 8.2 adds support for iPhone 3.0 goodness, it strips iPhone off of all the Jailbreak excitement! If you upgrade to the latest version of iTunes, you will no longer be able to Jailbreak the iPhone nor use SSH over USB. Apple changed some protocols in MobileDevice framework which resulted in panic-mode amongst the jailbreak community! The added security implemented some serious checks on the device hardware/software (security epoch, chipid, security domain, production …

The much sought after firmware iPhone 3.0 Beta 2 firmware with a snappier touch over the Beta 1 is finally jailbroken (only a day after it was released!). Thanks to the Russian hackers @ iPhoneApps.ru
It is more or less a patched version of QuickPwn not endorsed by the Dev Team though. You get icy (from installer guys) on your iPhone and from there on you can put Cydia via SSH on your iPhone once you install openSSH.
I repeat, this jailbreak is intended only to those enrolled in the developer program. …