PwnageTool or QuickPwn is not released for iPhone 3G. DO NOT TRY TO UNLOCK iPHONE 3G AT THIS TIME IF YOU USE YELLOWSN0W
PwnageTool is available only for Mac OSX at this time. Windows users will have to wait for now.
So finally, after many speculations, we have a full jailbreaking and unlocking tools available for iPhone and iPod touch 3.0. Here we have a step by step guide to jailbreak and unlock iPhone 3.0:
- Download iPhone 3.0 firmware – You can use the direct download links as posted on technoNix. They are the original iPhone 3.0 firmwares.
- Download PwnageTool 3.0 tool from here: Download Links
- Put the downloaded files in one folder.
- Open up PwnageTool and select Expert mode from top left and click the iPhone that matches your device.
- PwnageTool 3.0 will search for the correct firmware file itself. If not, then browse manually for the ipsw file downloaded in step 1.
- Select General and click Next.
- On this screen, Check “Activate the phone” and “Enable baseband update”. You can change the partition size if you want. It’ll give you more Cydia space.Click Next
- On this screen, check “Neuter Bootloader”, “Unlock baseband” and “Autodelete bootneuter.app”. You can upgrade or downgrade baseband if you want. Click Next. Again hit the next arrow on next screen.
- Select the package installers that you want to install. We recommend both Cydia and Icy.Click Next
- Change logos if you like.Click Next
- Now select “build” and click next. Choose a place to save custom ipsw file.Click Save
- PwnageTool will start building the custom ipsw file.
- Enter your Password when prompted
- If your phone has been Pwned before(if you unlocked your iPhone with PwnageTool before- not with QuickPwn, Only PwnageTool), then Click Yes. If you are not sure Click No. Infact, to be safe, click No. There is no harm in choosing No.
- Follow Instructions exactly to put your iPhone in DFU mode. It’ll display a confirmation that your iPhone is in DFU mode. Click OK.
- Close PwnageTool and start iTunes. Make sure you have iTunes 8.2. Press option key and click restore. Browse for custom ipsw file(not the original one downloaded in step1. The custom ipsw created in previous steps)
- Wait for iTunes to complete. Relax and have a coffee 🙂
- After iPhone restarts, Bootneuter will launch automatically and will unlock and activate your phone. Do not mess with it. Let it complete its work. It may take few minutes.
There you Are. You are now a proud owner of an Unlocked and Jailbreaked iPhone 3.0. Do some copy/Paste Stuff, send MMS, record video and much more stuff you can do with iPhone 3.0.

Enjoy 🙂
Thank you Cody Overcash (at ModMyi) for the step by step guide.
Update: You can now Jailbreak and unlock iPhone 2G 3.1 using pwnage tool. Check out the guide.