The iPhone 3G is now fully unlockable via software

Happy new year!

The iPhone dev team has made available software which allows the iPhone 3G to be unlocked via software, so it is not necessary to purchase any hardware for your iPhone 3G in order to unlock it. Let me repeat that, you do not need to purchase any hardware in order to unlock your iPhone 3G and you can use the iPhone 3G with any provider. So it has just become the best time to buy an iPhone 3G, as you are able to use it with any GSM provider.

Note: this works with the latest firmware (2.2) and the latest baseband only, so be sure to upgrade your iPhone 3G firmware using iTunes before running the unlock.

Full instructions here

Full set of instructions with screenshots at iClarified