Apparently, this is the worlds first unlocking solution available for the 3G model. This came from a brazilian hacker within 2 days after the official launch. The hack is a hardware method of building a sim adapter. It will trick the iphone to believe that the inserted sim is a test sim and it allows all the operations from that sim. See the report from iphonehacks about this. You can visit the original authors page also (It is in portugese).
This technique does not need any software/hardware hacking. You need not jailbreak the firmware also. But unfortunately this is going to be a costly affair. It seems that they are charging around $250 for their solution. See this article about the pricing.
On a related note, iphone dev team announced that they are able to jailbreak the iphone 3G model. Yet another worlds first. They will be releasing the new pawnage tool 2.0 shortly, after some testing. See the report on this from iphonehacks.
May be we should recap a little bit of history. It is announced that iphone 3G runs the 2.0 version of the firmware. The 2.o firmware had been released earlier to the launch of 3G phones. 2.0 version can be used on the older non-3G phones also. As per the confirmations, the 2.0 firmware on non-3G phones can be jailbroken and unlocked. There is no confirmation for this on the 3G models.
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