Engadget reports the 3GS has already been compromised. The tools to jailbreak and unlock it is coming soon.

After upgrading to 3.0 iPhone software, you might want to install AppSync to allow yourself to install your cracked apps to work. MobileInstallion is not needed this time.

 Open Cydia (DONT USE ICY)

RedSnow has just been released. redsn0w is an easy to use, multi-platform, multi-device jailbreaking and unlocking 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).

REDSN0W PROVIDES SIMILAR FUNCTIONALITY TO QUICKPWN.

Follow this guide to update to 3.0 OS. Don't forget to first update your iTunes to 8.2 or you will get restore error message.

They have listened long enough to the many complaints about the pricing for early 3G users.

AT&T statement:

Importantly, we want our customers to better understand our wireless device upgrade program. Like most U.S. carriers, we offer a variety of phones that we sell below our actual cost when customers agree to sign service agreements. In general, the more a customer spends with us, the quicker they become eligible for a price break on a new device. For example, iPhone customers who spend more than $99 a month per line with us generally are eligible for an upgrade between 12 and 18 months into their contract.

We also currently offer early upgrade pricing only for iPhone 3G S and iPhone 3G.

All of that said, we’ve been listening to our customers. And since many of our iPhone 3G customers are early adopters and literally weeks shy of being upgrade eligible due to iPhone 3G S launching 11 months after iPhone 3G, we’re extending the window of upgrade eligibility for a limited time.

We’re now pleased to offer our iPhone 3G customers who are upgrade eligible in July, August or September 2009 our best upgrade pricing, beginning Thursday, June 18.

 That means if you are eligible to upgrade in July, Aug, or Sept, then you can get a 16GB 3GS for $199 beginning June 18th.

Some tutorials on the web on how to setup netshare do not explain how to setup on Vista correctly. They also have instructions that are just not too easy to follow and missing steps that you need to do. I will show you how to do it and get it working quickly.

You need:
-iPhone
-Vista PC
-Wireless card/adapter on PC
-Netshare iphone app

1. Install Netshare app on iphone
2. On PC, go to Control Panel/Network Connections, Right-click on your wireless card, choose connect/disconnect, click "setup a network or wireless connection at the bottom link, choose setup a wireless adhoc, name the SSID as iphone netshare, security type open, save this network.
3. On PC, go to Control Panel/Network Connections, Right-Click on your wireless network card, properties, ipv4, properties, Alternate Configurations Tab, User Configured, then enter:

IP address: 192.168.10.2
Subnet Mask: 255.255.255.0

4. On PC, go to Control Panel/Network Connections, Right-click on your wireless network card, choose Connect/disconnect and select the wireless connection you just made in step 2 (iphone netshare), connect to it.
5. On iPhone, go to settings, turn on your WiFi, you'll see iphone netshare listed, click the right arrow next to it, select Stactic tab, enter:

IP address: 192.168.10.1
Subnet Mask: 255.255.255.0
Leave HTTP Proxy off

6. Go back to WiFi networks, select iphone netshare to connect, the signal should be showing 3G not a WiFi signal on your phone.
7. Open FireFox on your PC, go to Tools, Options, Advanced, Network Tab, Settings button, Choose manual proxy, enter 192.168.10.1 and port 1080 in Socks host. Select SOCKv5, Click ok, ok and exit the Firefox browser.
8. On iPhone, open Netshare, you should see the Proxy IP address as 192.168.10.1 and port 1080.
9. Open Firefox and test your internet, it might be a bit slow and some pages might not load but most will so step 10 is...
10. Enter a thank you comment on this post...

Leaked over a week early, get the download here.

 iPhone1,2_3.0_7A341_Restore.ipsw (230.05mb)

This file might be for iPhone 3G only, might not work on Touch or 2G.

3.0 Firmware includes new Cut/Copy/Paste which I am going to be using alot. Other features include, MMS, Spotlight search, File sharing betwwen iphones, Push Notifications... 

This pic shows how different the two iPhones would be once you upgrade the 3G to 3.0 firmware. Is it worth an upgrade for $399? I don't think so. Video recording can be done on the 3G via unauthorized software, same for Voice dialing.

There it is. I'm not eligible for a standard upgrade price until 12/24/2009, whatever price that maybe. Currently eligible for 16GB 3GS for$399, $200 more than new user to AT&T. Now why does it show I can get the regular 8GB 3G for $299 when they system already knows I'm using it. What's more bizarre is the price of it, $299 when they have marked it down for new users for $99. Notice each upgrade require 2-yr commitment, if canceled early, they charge $175. Why 2 year? Why does Apple keep making new iPhones every year? So they can help AT&T make even more money.

Apple could have made the 3GS available when the 3G was released. They know the technology, they have the technology, they just wanted to make the iPhone better and better each year so people can buy it and upgrade. They want us to buy 2 times, 3 times the iPhone. How you think they made the 3GS so fast? It was announced almost out of nowhere, they kept the secret to themselves. Hold the better technology for next year's release. I'm telling you, it's how techno companies do.