The iPhone Dev Team has released a video demonstrating a new unlocking method for all iPhone 3Gs. The new unlock will be able to unlock the 3G iPhone running 3.0 firmware regardless of baseband or bootloader, where in the past has prevented future unlocking of the iPhone.
The new tool, replacing the previous YellowSn0w, will be called UltraSn0w on Friday, after Apple has released the 3.0 firmware and can make last minute adjustments. UltraSn0w will both unlock and jailbreak the iPhone. Jailbreaking is what allows the device to run unsigned applications that are not distributed by Apple. This new method will work on the iPhone 3G and iPod Touch 2G running 3.0. However, this method may not work on the new unreleased iPhone 3GS, which runs the same baseband, but the team will not know until they have managed to get a hold of the new hardware on Friday.
MuscleNerd, from the iPhone Dev Team, has posted a video of the hack working on the current iPhone 3G running 3.0 to work without loading baseband or bootloader. The new method was discovered by someone by the name of Oranav, an iPhone enthusiast from outside of the Dev Team.
(Skip the first 2 minutes of the clip)