NOTE: The instructions below were based on the iPhone 2G in conjunction of a Intel McBook. A PC will do too:)
NOTE: While writing, no YouTube fix was available. Please read on about this issue.
Okay, let start, what were the steps?
1. Read today's release post of iPhone Dev Team carefully, the owners creators of the free available RedSn0w software. Just read the whole thing once or twice.
2. Download and install RedSn0w for your platform:
Mac OS X torrent
Windows torrent
No torrent client on your Mac?, I have used this uTorrent client.
3. Download the 3.9 and 4.6 baseband bootloader files HERE (or google around). Unzip them on your desktop.
4. Backup the iPhone 2G Sync in Progress..takes ages grrr.
5. Upgrade the iPhone 2G to OS 3.0 via iTunes 8.2
6. Start RedSn0w
7. It will ask for the current .ipsw file. For the iPhone 2G this should be this file iPhone1,1_3.0_7A341_Restore.ipsw and is located at ~
Click browse and select the above file
8. The file will be processed and followed with a "IPSW succesfully identified" status.

10. Check checkboxes of both the Jailbreak and Unlock options
11. Next
12. Point the 3.9 and 4.6 bootloader files
13. Next
14. Power OFF your iPhone 2G while CO
15. Still Power OFF and CONNECTED right? click Next
16. Follow the instructions as told to bring your iPhone 2G in DFU mode
17. If you were quick enough in step 16, do nothing. The Jailbreak process will start automatically followed by bootneuter who takes care of the Unlock. ( If you were too slow, like me, repeat step 14,15,16 again befor you continue to step 18.)
18. If everything went well, your iPhone 2G with OS 3.0 should both jailbroken and unlocked. Cydia is installed and works (must be updated).
Now what are my 1st impressions?
In general it looks like all is working, however YouTube is not working. Reports that Push Notifications also don't work are found on forums. I haven't test it yet, because I don't feel the need for this new 3.0 feature yet but I hope for a YouTube fix soon. When you try to do something Cannot connect to YouTube. [YouTube Fix that might solve your problem is found HERE] The Cut Copy Past works fantastic. Also the Spotlight works excellent (click Home once) to find everything on your phone. Internet browsing feels faster. The caledar functions work. Stocks is working, now with the 3.0 landscape Charts.
YouTube as said before, is not working (yet). Camera is working with mini-preview
of the last picture. Clock is working. Calculator and Notes are working. Voice Memos is a new built-in app and is working. iTunes and App Store are all working no problems. Weather app is working.
Conclusions:
My conclusion is that if you don't mind missing youtube for some time, the OS 3.0 is worth to load on your locked iPhone 2G. If youtube is your life, you should stick on our current 2.x firmware version and wait till the youtube fix come out. The Cut Copy and Paste is just awesome, soo easy to use.
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