For a change, I published 3 videos which definitely enables a total noob to unlock his/her iPhone without much difficulty. Latest Firmware via iTunes (2.2), QuickPwn (Jailbreak) and yellowsn0w via Cydia/installer (Unlock) hold the three key steps for a successful unlock.
Before proceeding further, make sure you are equipped with the following :
1) Strictly iPhone 3G Updated to 2.2 firmware via iTunes (2G iPhones have a different process – BootNeuter from Cydia).
2) Intel Mac (10.5.6 s/w update) or Windows machine. [Mac users, make sure DFU mode is enabled (10.5.6 s.w update and Unibod Macs have issues with iPhone not being recognized while Jailbreaking (QuickPwn).]
3) WiFi Network recommended. (If you don’t have a Wireless Router, try creating an Ad-Hoc WiFi network on your PC/Mac.
4) Make sure SIM Pin is disabled. Put your SIM in your old phone and disable the Pin.
If you are on the iPhone, click on the video title to watch it.
Video 1 : Intro to iPhone 3G Software Unlock and Jailbreak : Recommended for newbies, recent iPhone converts. Experienced users may proceed to the second video.
Video 2 : Jailbreaking your iPhone using QuickPwn [Mac and Windows versions are pretty similar : Download the latest version.] Feel free to skip to the third video if you have Cydia installed on your iPhone already.
Video 3 : Software Unlock iPhone 3G using yellowsn0w available via Cydia or installer.app
Please list your GSM network and Country where you unlocked your iPhone such that the iPhone community can greatly benefit. iPhone 3G software unlock is achieved by iPhone Dev Team. Please don’t spend time on x-Sim hacks and never pay for iPhone unlocking software.