Update: ultrasn0w has been released by DevTeam! ultrasn0w is an iPhone 3.0 software unlock for iPhone 3G users only.

Here is how to install ultrasn0w:

1. Jailbreak your iPhone 3G 3.0: use redsn0w

2. Go to Cydia and add  repo666.ultrasn0w.com to your sources

3. Reboot your iPhone 3G (T-mobile users should disable 3G before using ultrasn0w)

4. Enjoy your iPhone 3G unlock, thanks to the Dev-Team that worked hard on it!

With the new OS 3.0 update a lot of people are stuck without an unlock, and they’re waiting for the iPhone Dev Team to create one. On Friday the iPhone Dev Team plans to release ultrasn0w. Ultrasn0w is the name of the Dev Team’s new iPhone 3G unlock software and it’s 100% free just like all the other Dev Team tools are. ultrasn0w will allow you to unlock your iPhone 3G on the new iPhone OS 3.0 firmware. Of course to unlock your AT&T iPhone 3G and install ultrasn0w you will need to jailbreak your iPhone 3G. The jailbreak does not appear to be out right now but Dev Team is working hard to bring it out for us. Please have patience and let the Dev Team do their work! Don’t ask when it’ll be out. I’ll make a post with download links and information on QuickPwn.com homepage, forums, and also update twitter, YouTube, send e-mail notifications to those who subscribed.

Waiting for ultrasn0w? Here’s what we know about it so far.

• It’s safe to update to the current iPhone 3.0 baseband – ultrasn0w will work with it, but for future updates such as firmware 3.0.1 (or whichever # the next firmware is) you should hold off on updating and check here first to see if it’s safe to update. Apple may be able to make a baseband update that permanently locks your firmware just as they did with firmware 2.2.1 users.
• ultrasn0w will only work with iPhone 3G – iPhone 2G users can still unlock their iPhone using BootNeuter
• Just like yellowsn0w, ultrasn0w can be installed from Cydia (Repo URL has not been announced yet)

More information and a guide on how to unlock iPhone 3G with ultrasn0w will be posted once Dev Team has released ultrasn0w!