The iPhone Dev-Team has released an unlock for the 3G & 3GS with basebands 04.26.08, 05.11.07, 05.12.01 and 05.13.04, Which in short means as of right now all iPhones except the iPhone 4 are unlockable even on the latest firmware iOS 4.

Note: Your iPhone must already be jailbroken to take advantage of the Unlock. We will update out Tutorials soon to include the Jailbreak for iOS.

Just add the repo to your Cydia & install Unltrsn0w to unlock your device.

Phone DevTeam’s 3G and 3GS software unlock, now with added PwnApple. Compatible with basebands 04.26.08, 05.11.07, 05.12.01 and 05.13.04! Thanks to @sherif_hashim and @Oranav for contributing baseband crashes