A FREE software tool designed to unlock the iPhone 3G, or an iPhone running the version 2.0 of its software is close to release accordig to the iPhone Dev Team.
Last week the iPhone Dev Team managed to break its way into the new software hours before it was officially launched. The developers said that unlocking the device was a hard task but they are now sufficiently familiar with the software that future versions should be easier to build.
Good luck! =)
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actually it won’t unlock the 3g iphone. it can only jailbreak the 3g iphone which would allow you to use third party applications.