Note that this release is for iPhone 3G, 2G and iPod touch 1st Gen. This won’t work on iPhone 3GS or iPod touch 2G and 3G.
The iPhone Dev team now has a solution for you to upgrade to the latest firmware version 3.1. To use the iTunes 9 fully with Genius for apps, App management tool etc you need to upgrade the iPhone or iPod touch to the latest firmware 3.1.
All you need to use is the Pawnage tool 3.1 to create a custom .ipsw. Now uploading this pwned firmware file shall jailbreak your iPod touch / iPhone 3G or 2G. iPhone 2G (1st generation) shall be automatically be unlocked using this, for iPhone 3G you will need to use the upgraded version of ultrasn0w via cydia. Learn more about using / installing ultrasn0w.
Downloads you need to make:
Pwnage tool 3.1. Offical bittorrent release.
Firmware 3.1 for iPhone 2G or iPhone 3G or 3.1.1 for iPod touch 1G (whichever you need)
Please note that unlocking / jailbreaking your iPhone / iPod can void the warranty and or cause permanent damage. Go ahead with caution and do let us know in comments below how it worked for you. 🙂
Read the official entry by the dev team here
And if you need any assistance or have some doubts – post your query at the iPhone Help Forums