Awesome folks on the Dev-Team have released the much awaited PwnageTool 3.1 for Mac OS X to unlock and jailbreak iPhone 1st Generation (2G), its successor the iPhone 3G and iPod touch 1G. This release does not support 
iPhone 3GS and the new iPod touch. iPhone Dev-Team has announced the availability of PwnageTool 3.1 and so now you can easily jailbreak and unlock your iPhone with firmware 3.1. Follow the step-by-step guide posted below in order to unlock and jailbreak your iPhone with OS firmware 3.1:
Step 1: Download and install iTunes 9 if you haven’t already.
Step 2: Start iTunes 9. Sync your iPhone with your PC so that iTunes backs-up all your important data including settings, apps, music, contacts and photos.
Step 3: Download PwnageTool 3.1, Bootloader 3.9 & 4.6 and the original iPhone OS 3.1 firmware (download links given below). Move all these files to your desktop.
For Windows Users: PwnageTool is for Mac OS X only so you will have to download a custom cooked firmware for your iPhone version (2G or 3G). I can’t post the download links for these files for the reasons you all know very well. Just Google “iPhone 2G Custom 3.1” (If you are using iPhone 2G) or “iPhone 3G Custom 3.1” (If you are using iPhone 3G) and use one of the torrent links to download the custom created .ipsw file and then continue this guide posted below from Step 8.
Step 4: Start PwnageTool 3.1 and select your device:
Step 5: PwnageTool 3.1 will now automatically detect the correct firmware for your device.
Step 6: Click on "No" when PwnageTool asks you “Do you have an iPhone contract that would activate normally through iTunes?”.
This will your unlock your iPhone on firmware 3.1 so that you can use it with any carrier SIM card. (for iPhone 2G only)
Step 7: PwnageTool will now create the custom .ipsw file for your iPhone which will be jailbroken and unlocked.
Step 8: Now you will have to restore your iPhone to this custom firmware 3.1 that you just cooked using PwnageTool. Click on your phone from the sidebar in iTunes to get to this screen as shown in the screenshot below:
Now press and hold left “alt” button (“Shift” button on Windows) on the keyboard and then click on “Restore” (Not “Update”) button in the iTunes and then release the “Shift” button.
This will make iTunes prompt you to select the location for your downloaded custom firmware 3.1. Select that custom .ipsw file and click on “Open”.
Step 9: Now sit back and enjoy as iTunes does the rest for you. This will involve a series of automated. Be patient at this stage and don’t do anything silly. Just wait while iTunes installs the new firmware 3.1 on your iPhone. Your iPhone screen at this point will be showing a progress bar indicating installation progress. After the installation is done, iPhone will restart automatically and you should now have a fully unlocked and jailbroken iPhone 2G. iPhone 3G on the hand will only be jailbroken, not unlocked. iPhone 3G users can follow the guide posted here to unlock their device on firmware 3.1 using ultrasn0w.
Step 10: Once you are done with the unlocking and jailbreak process. You can now restore all your settings, apps, music, contacts and photos to the newly installed firmware version 3.1 by restoring the backup that you made in Step 2 from iTunes.
iPhone 3GS users will have to wait for the updated versions of redsn0w and ultrasn0w in order to jailbreak and unlock their device. If you are an iPhone 3GS user and you have accidently upgraded to 3.1 then you can downgrade your phone back to 3.0 with jailbreak by following the guide here.
You can follow me on twitter or join our facebook fanpage to keep yourself updated on all the latest jailbreaking and unlocking releases.
Feel free to ask me any question here should you run into any problem during the update process.
UPDATE 1: Those of you who are getting “16xx” and “21” error in iTunes when restoring should follow the instructions posted here to fix this problem.
UPDATE 2: iPhone 3GS can now be jailbreaked and unlocked running on firmware 3.1. Follow the step-by-step guide posted here to jailbreak and here to unlock iPhone 3GS on firmware 3.1.
Disclaimer: This guide is for testing & educational purposes only. I’m not responsible for any loss of important data or malfunctioning of your iPhone.
Download iTunes 9 for Windows and Mac OS X
Download the Original iPhone OS 3.1 firmware
Download PwnageTool 3.1 for Mac OS X
Download Bootloader 3.9 (Required by iPhone 2G only)
Download Bootloader 4.6 (Required by iPhone 2G only)
