George Hotz a.k.a GeoHot has released blackra1n RC3, which is an update to a 1-click jailbreak that adds activation options and an add-on blacksn0w, which unlocks latest iPhone 3G and iPhone 3GS ...
The Pwnage Tool by the DevTeam hacker group allows you to create custom iPhone firmwares for the purpose of jailbreaking, to get full control over your device (see why you should jailbreak here).
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