The iPhone Dev Team has done it again. Just last week I reported that you could now Jailbreak any iPhone to the new 3.0 iPhone firmware, meaning things like easy tethering, live streaming through Qik.com, and more. Tonight, the iPhone Dev Team has taken that one step further by completely unlocking any iPhone before the iPhone 3G S to work on any GSM cell phone network.
Set up is easy. Start by Jailbreaking your iPhone using redsn0w or the Pwnage Tool. Then, in Cydia or Icy, add the repository, repo666.ultrasn0w.com. Then search for “ultrasn0w”. Install it, reboot, and your phone will now work with any GSM network! It is reported that due to T-Mobile USA’s network compatibility, 3G speeds will not work on the phone, so it’s encouraged that users disable 3G before installing Ultrasn0w that might be on that network.
As of today, any iPhone previous to the 3G S no longer requires a contract on any service, and has full access to copy and paste, search, voice memos, and more, in addition to all the great tools a Jailbreak can provide. The unlock and Jailbreak does not yet work on the 3G S, and it is rumored that it may take awhile due to the new chipset on the new device. If you run into issues with your unlock, report them on the iPhone Dev Team blog, or here and I’ll be sure and report anything major.
Stay N' Alive 
It works perfectly. They are really the best team ever.
This is great, but I'm still awaiting the 3GS unlock. I just wish Apple had released it ready-unlocked.