Users of iPhone 2G (1st gen) / iPhone 3G (2nd Gen) / iPod Touch 1st gen and iPod Touch 2nd gen can now Jailbreak their iPhone’s on firmware version 3.0. Dev Team’s redsn0w (redsnow) does the same within minutes without any complications. A simple 10MB download followed by the on screen instructions and you can have your iPhone 2G/ 3G running OS3 jailbreaked easily. This also unlocks iPhone 1st Generation (though we already did that our way 
).
To use this tool you only need to have the IPSW file of the OS 3.0 that you have uploaded on your iPhone iPod Touch. (You can download OS 3 – iPhone 2G iPSW here, iPhone 3G IPSW here)
Redsn0w comes in a Mac and Windows version. Though you will need an Intel based Mac to get the same working. We tested it on an iPhone 2G and Windows XP.
Note: Users running Yellowsn0w to unlock their iPhone 3G will lose the unlocking capability if they use redsn0w. Proceed at your own risk.
Get Redsn0w download links from here