The iPhone hacking faithful can now unlock and jailbreak their original iPhone, iPhone 3G, and iPod Touch 1G devices with the much-awaited PwnageTool 3.1. Unfortunately, the hacking tool does not yet support the iPhone 3GS or the new iPod Touch, but an update is expected soon.
Arriving only a week after Apple released the 3.1 software update for the iPhone and iPod Touch, DevTeam has set free Pwnage Tool 3.1. The software allows you to create and install custom firmware packages to jailbreak your Apple device and also use SIM cards from carriers other than AT&T (or the original carrier you purchased your iPhone from).
Pwnage Tool 3.1 is only available to users of the original iPhone , the iPhone 3G, the first-generation iPod Touch. The DevTeam says on their page that Apple is making it increasingly difficult to hack the iPhone 3GS and the second-gen iPod Touch with each new firmware update the company is launching.
More: http://pcworld.com/article/172079/