Dev Team released redsn0w utility for MAC and Windows users. The latest version in 0.7.2.

redsn0w is an easy to use, multi-platform, multi-device jailbreaking and unlocking (iPhone 2G only) tool for the iPhone 2G (original iPhone), the iPhone 3G (but not the 3GS) and also the iPod touch (first and second generation). Currently it is available for Windows and Mac OS X (there are some issues using redsn0w with OS X PPC, please use an Intel Mac until we have this problem resolved).

1. GOLDEN RULE: If you are using a 3G iPhone with yellowsn0w and rely on yellowsn0w to obtain cellular service, then you should NOT use redsn0w right now. Ultrasn0w (the 3G carrier unlock) is not included with this release and therefore your baseband will be locked and unable to use an operator other than the official one it was bought for. UltraSn0w will be released via APT (cydia and icy) soon. If you have an original iPhone (1st generation) then 3.0 carrier unlock works with this redsn0w release.
2. Yellowsn0w in its current form will NOT work with the baseband version that is present in the 3.0 update, you will need Ultrasn0w, which will be released sometime soon, Ultrasn0w will work with all iPhone 3G models (but not 3GS), even ones that were previously unlockable, Ultrasn0w (when available) will be released via APT (this means you will be able to get it via Cydia or Icy).
3. Please read all parts of this post before downloading and using these tools.
4. Read items 1, 2 and 3 again and again.
5. At the bottom of this post are the bittorrent files for the latest version of redsn0w.
6. This app is suitable for the recent 3.0 release
7. redsn0w will NOT work for the iPhone 3GS.
8. redsn0w WILL work for Original iPhone (1st Generation), Original iPod touch, iPod touch 2G and the iPhone 3G (not the iPhone 3GS).

To use redsn0w simply upgrade the device in iTunes to firmware version 3.0 and run redsn0w to activate and jailbreak the device (and if you are using an original iPhone 2G, it will unlock it too!)

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The iPhone 2.1 software update contains many bug fixes and improvements. To get it, connect your iPhone to your computer using iTunes 8 and click Check for Update.

Update includes:

• Decrease in call set-up failures and dropped calls
• Significantly better battery life for most users
• Dramatically reduced time to backup to iTunes
• Improved email reliability, notably fetching email from POP and Exchange accounts
• Faster installation of 3rd party applications
• Fixed bugs causing hangs and crashes for users with lots of third party applications
• Improved performance in text messaging
• Faster loading and searching of contacts
• Improved accuracy of the 3G signal strength display
• Repeat alert up to two additional times for incoming text messages
• Option to wipe data after ten failed passcode attempts
• Genius playlist creation

You can find the update in itunes and we’ll have it here shortly:

Here you can get the new updates:
For 3G Iphone
For 2G Iphone

Just successfully updated my iPhone first generation to 2.0 firmare. It works great and I would like to share that method with all my readers.

You need following softwares and firmwares:

iTunes 7.5

iTunes 7.7

Original 2.0 Firmware

Custom 2.0 Firmware

1) Install iTunes 7.7 (you don’t need to uninstall previous version of iTunes), connect iPhone to PC, synchronize(to save all contacts and etc.), disconnect and close iTunes.

2) Open iTunes 7.7, connect your iPhone and hold Home + Sleep/Wake button until it put into Restore more

3) Restore iPhone to Original 2.0 Firmware via iTunes 7.7 (Holding SHIFT on your keyboard press Restore button and select iPhone1,1_2.0_5A347_Restore.ipsw) Quit iTunes when iPhone will be restored.

4) Rename folder C:\Documents and Settings\Your windows account name\Application Data\Apple Computer to Apple Computer backup and My Documents\My Music\iTunes to iTunes backup.

5) Uninstall iTunes 7.7 via Control Panel

6) Install iTunes 7.5

7) Connect iPhone to PC using DFU mode

• Press and hold the Home button and the Sleep/Wake button at the same time.

• After exactly 10 seconds release the Sleep/Wake button. Continue holding the home button until you iTunes pops up a message telling you that it has detected an iPhone in recovery mode.
• The iPhone screen will remain black – important

This YouTube video should help you How to put your iPhone in DFU mode

8) Restore iPhone to Custom 2.0 Firmware (Holding SHIFT on your keyboard press Restore button and select 20_347_Cid.ipsw. If you get 16