MAKE SURE YOU HAVE A BACKUP OF YOUR PHONE
1. You need these two files:
x12220000_4_Recovery.ipsw and iPhone1,2_2.0_5A347_Custom_Restore.ipsw.
One of the files is a torrent so make sure you have a torrent downloading app ready to go. If you don't you probably shouldn't be pwning your iphone. If you really gotta know how to do it comment here and I'll respond and give you step by step instructions on how to do it.
2. Make sure you have itunes 7.7 installed.
for vista: Click start then copy this into the search box and press enter after:
for XP: click start then run, then copy this into the run box:
3. Make a directory called: Device Support
If it already exist, clear it.
4. copy x12220000_4_Recovery.ipsw into the Device Support folder you just created.
5. Put your 3G into DFU mode. watch this video to see how:
6. Once your phone is in DFU mode and detected by iTunes (should be black screen on phone NOT itunes logo with usb cable), click on iphone in itunes, then hold the SHIFT key and click on restore.
7. Browse to the folder where you downloaded iPhone1,2_2.0_5A347_Custom_Restore.ipsw and select it. Itunes will then extract the file and you will see the ipod dev team’s pinapple logo pop up after a few seconds.
8. when restoring has completed, it will ask you to connect to itunes, then re-do the activation process (download carrier settings)
10. Thats the end you should see an app called Cydia which will allow you to start downloading some begining 2.x apps. (note that at this moment this process only jailbreaks the phone and does not unlock the phone like in the 1.x versions.) For those who want installer, i teo felt the same way until i realized how much more efficent the cydia app is. They are working on the ability right now to add your own repositories, however no one has really ported their apps so it is no cydias fault that everyone sold out to the itunes store.)
9. If you have mobile me don't forget to re connect to your mobile me account to retrieve all of you contacts.
thanks to sleepers.net for the guide (thought id add a few things for those who didn't quite get it.) Also thanks to Saurik and Bigboss for continuing to hack the planet. I keep telling people that without guys like you there would be no app store on the 2.0 firmware and that all those apps that are now $5.99 used to be free.
Keep coming back for more pwnage and cydia updates