Here it is boys and girls  iPhone Dev-Team’s Ultrasn0w unlock for legacy iPhone 3G owners is ready. The unlock works with the original iPhone as well but not the iPhone 3GS; for that you’ll have to be patient. Just follow the easy steps below to get your iphone 3g 3.0 to unlock your iphone.

Here is how to install ultrasn0w:

1. Ensure you have upgraded to iPhone OS 3.0
2. Jailbreak your iPhone 3G using redsn0w or PwnageTool (this will also install Cydia/Icy)
3. Run Cydia or Icy
4. Please add the repo repo666.ultrasn0w.com to Cydia or Icy. That last “o” is actually the number zero “0”! If you use the letter “o” you’ll get an error.
5. Search for ‘ultrasn0w’ in cydia or icy and install ultrasn0w
6. Reboot your iPhone 3G
7. T-Mobile USA users should disable 3G before using ultrasn0w
8. Enjoy

[via : iphone dev-team blog]