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Steps for Unlocking with YellowSn0w
The original iPhone users have, for the past half a year or so, been privileged to know the benefits of jailbreaking. These benefits, or namely the benefit of being able to install third party applications that aren't available anywhere else are really the only reason to own an iPhone these days. With the unlock, several options become available - you'll be able to switch providers assuming you yank out the AT&T-provided smartcard and replace it with a different providers'.
Now, let's quickly go over the install process, which is incredibly simple:
1. The yellowsn0w app will look and run exactly like the iPhone 2G Unlock
2. Just follow through the first couple of prompts until it asks you what to install or unlock
3. Make sure to install the cydia repository rather than the installer repository, since it houses most of the best apps
4. Now, follow the button pressing prompts TO THE LETTER. The program will ask you to click a series of buttons in a very specific order - go ahead and do that exactly. Don't worry, if you fail, you can always go back and try again.
5. Assuming Step 4 went smoothly, yellowsn0w should now be installing the Cydia app onto your iPhone and potentially unlocking it
6. Once unlocked, disconnect your phone, go into the Cydia app that should be installed now, and let it update
7. As soon as the Cydia app updates and reinitializes the iPhone, you're ready to start browsing for cool new third-party apps
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Chance of Bricking Your iPhone
A word of caution however. Because YellowSn0w is a new, experimental program, you're on your own if you accidentally brick your iPhone. And while it sounds difficult, your iPhone can get bricked at any time, and it will just not turn on again, or get stuck in a loading screen, or the like - believe me, I thought at one point that my own iPhone was bricked due to the amount of times I jailbroke it.
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All the Apps You Ever Wanted and More
With your 3G iPhone now unlocked, the world is essentially your oyster. You can download all the beautiful apps available on the Cydia repository, including a full version of the original Quake, or a skinning app that allows you to change every bit and piece of the UI, or even a P2P networking app with included music player. Remember to always keep in mind how much space you have left, and to continually make sure NOT to update your phone before the jailbreak update comes out - at which point, you'll have to re-follow the instructions laid out in this article.