Previously, iOS 4 was unlocked for iPhone 3GS users who managed to jailbreak it with pwnagetool by msft.guy or package form Kaatje. The previous two jailbreak methods actually preserved your baseband and if you were previously on 05.11.07 then you could try patched blacksn0w rc2 to unlock iOS 4 on iPhone 3GS.
Breaking:
- ultrasn0w 0.93 has been released by iPhone Dev Team. You can finally unlock iPhone 3.1.3 [05.12.01] on iPhone 3GS and 3G.
- ultrasn0w 0.93 also makes possible to Unlock iOS 4 iPhone 3GS 3G.
Now, iPhone Dev Team has released a compatibility fix for ultrasn0w 0.92 named as ultrasn0w 0.92.1. This is meant for developers who have jailbroken their iPhone 3GS 3G on iOS 4 preserving their baseband 04.26.08. It is not the new iPhone 3.1.3 unlock for 05.12.01 baseband and neither for iOS 4 on baseband other than 04.26.08.
The source repository has been changed and this time it is http://ios4.ultrasn0w.org which has to be entered in Cydia source list.
In official description, he again ensures that unlock iOS 4 and unlock iPhone 3.1.3 [05.12.01] are coming soon after public availability of iOS 4 and iPhone 4.
Version 0.92.1 of the ultrasn0w unlock is meant for those with baseband 04.26.08 running on 4.0GM. It does not use any new exploits, it merely fixes a logfile permission problem.
A new ultrasn0w capable of unlocking 4.0′s baseband isn’t yet released because both the final 4.0 and iPhone 4 are coming out next week. Please be patient.
If you’re running baseband 04.26.08 on 4.0GM, you can install ultrasn0w by adding http://ios4.ultrasn0w.org to your Cydia source list (do not use the repo666.ultrasn0w.com repo because that still has the older version 0.92). Note: ultrasn0w is spelled with a zero, not the letter “o”.

