The iPhone Dev Team is still hard at work unlocking the iPhone 3G, luckily they are keeping everyone in the loop in regards to their progress. They haven’t achieved an unlock yet but they have reached a milestone on that road by successfully downgrading the modem baseband firmware to an older version. Here is their screenshot:

This image is the “About” screen from a 3G iPhone that was bought in a store last week. As you can see the modem firmware version has been successfully downgraded to an older “beta” firmware. This is not an unlock (yet), but it is our illustration of the first progress made with regard to hacking the 3G baseband.

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The iPhone Dev Team has released information in regards to which iPhone and iPod devices will work with the certain features of the upcoming PwnageTool 2.0. Unfortunately unlocking the iPhone 3G will not be supported in the first release. This functionality will be released in a future update.

So, currently (when released) PwnageTool 2.0 will support:-

iPhone (1st Gen) with 2.0 – Activated, Unlocked & Jailbroken, (with support for third party applications).

iPod Touch with 2.0 – Activated & Jailbroken, (with support for third party applications).

iPhone (3G) with 2.0 – Activated, Jailbroken (with support for third party applications).

We’ve made some progress on the baseband unlock of the 3G device, but at this point PwnageTool will not support 3G unlocking or BootNeuter on the 3G device. It is, of course supported on the first generation device with 2.0. We’ll push out an update with 3G support if and when it is completed.

A few new videos have surfaced today. First we have the video of an unlocked iPhone 3G, this isn’t the software unlock that we’re all anxiously awaiting. It requires the use of a SIM adapter much like the Hyper-card or Turbo SIM methods used on the first generation iPhone.

Second up we’ve got another video released by the iPhone Dev Team showing a fully jailbroken iPhone 3G.