The unlock for the iPhone 3G from the iPhone Dev team is coming on New Year’s Eve (Just as we turn 1); and here is a quick video preview of the software unlock for iPhone 3G in action. The iPhone 3G unlock software is known as yellowsn0wand would unlock iPhone 3G uptill V2.1.
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However simple hardware solutions to unlock the iPhone 3G (even v2.2) are still available and it costs anywhere upto $50 to get it done!