December 22, 2008 MuscleNerd from the infamous Dev-Team has publicly demonstrated the unlocking of an iPhone 3G, before switching to a T-Mobile SIM card and making a phone call. Click through for the demonstration video.
Dev-Team only has to package the software, codenamed 'yellowsn0w', into the slick, user-friendly form that you have come to expect from their QuickPwn tool and other software releases - and they hope to get this done in time for a New Year's Eve release.
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As the team previously warned, the unlock will only work for those of you with an iPhone running the 2.11.07 baseband. That's everyone who hasn't yet updated to the 2.2 firmware using Apple's official methods. If you're unsure, check the Modem Firmware value under Settings General About.
via Dev-Team Blog