The ultimate jailbreaking tool that was being awaited by many developers and iPhone users since the name was released months ago. Its redsn0w! Check this post for the release.

redsn0w is an easy to use, multi-platform, multi-device jailbreaking and unlocking (iPhone 2G only) tool for the iPhone 2G (original iPhone), the iPhone 3G (but not the 3GS) and also the iPod touch (first and second generation). Currently it is available for Windows and Mac OS X (there are some issues using redsn0w with OS X PPC, please use an Intel Mac until we have this problem resolved).

This tool is known to work with similar functionality of QuickPWN.
A few best online casino to note things are –

• If you are currently using yellowsn0w and have an unlocked 3G phone which is unlocked using yellowsn0w, then its better you don”t use it as it does not have an unlock carrier for 3G, i.e. Ultrasn0w.
• If you are using the 1G original iPhone, the 3.0 unlock would be now working for you. So if you want to use 3.0 firmware and need it unlocked, redsn0w is for you.
• Ultrasn0w would be released soon through APT like Cydia which would help in unlocking the 3G phones.
• redsn0w WILL work for Original iPhone (1st Generation), Original iPod touch, iPod touch 2G and the iPhone 3G (not the iPhone 3GS).

To use redsn0w simply upgrade the device in iTunes to firmware version 3.0 and run redsn0w to activate and jailbreak the device (and if you are using an original iPhone 2G, it will unlock it too!)

For redsn0w, these are the bittorrent links –
Mac OS X
Windows

These are a few alternate mirror links –
For Mac OS X –

• http://bit.ly/redsn0w-mac-thewwwblog
• http://download.server-land.com/redsn0w/redsn0w-mac_0.7.zip
• http://therepository.binarytide.com/redsn0w/redsn0w-mac_0.7.zip

For Windows –

• http://bit.ly/redsn0w-win-thewwwblog
• http://intern.datentankstelle.at/iphone/redsn0w-win_0.7.1.zip
• http://www.gotokohsamui.com/redsn0w-win_0.7.1.zip

Lately Pwnage tool 3.0 was released, and also here is a tutorial on how to update iPhone 3G to 3.0 firmware.