If you’ve accidentally upgraded to 3.1 on your iPhone 2G, all is not lost. I have been receiving a lot of requests for a solution.
Apple’s firmware releases have not had any detrimental baseband effects on iPhone 2G’s. So it really is just a matter of time before a jailbreak comes around or a downgrade is possible.
If you are part of the few who have upgraded and haven’t been able to use their iPhone and you have a 2G, you are in luck.
Downgrade my iPhone 2G from Firmware 3.1 to 3.0.1
1. Download iTunes 8.2 (MAC/WIN)
2. Shift Click + Restore to Firmware 3.0.1
3. Download/Use Redsn0w (MAC/WIN)
Note: Some people have had success restoring to an already Jailbroken/Unlocked custom firmware of 3.0.1 and then running Redsn0w.
Nothing has really changed since Apple updated firmware 3.0 to 3.0.1 except for an SMS exploit patch. If you have a jailbroken iPhone, read Updating to Firmware 3.0.1 (Why you should wait) before proceeding. Therefore, nothing really changes with the jailbreaking and unlocking process.

The quickest way is to use redsn0w. The tutorial is up to date for the most part. The only difference you will notice is that even after you update to 3.0.1 through iTunes, you will still select firmware 3.0 in redsn0w to jailbreak and subsequently unlock your iPhone.
3 Easy Steps (A Quick Reference)
1. Update to 3.0.1 through iTunes
2. Select firmware 3.0 in redsn0w to Jailbreak and Unlock
3. Enjoy
Unlock/Jailbreak your iPhone in Under Two Minutes
Once again the iPhone dev-team make unlocking your iPhone, running firmware 3.0, much easier. If you thought QuickPWN was fast, wait until you meet redsn0w.
Follow the steps below to unlock (iPhone 2G only) and jailbreak your iPhone 2G, 3G, and 3Gs.
Steps:
1. Download redsn0w (mac/win)
2. Upgrade your iPhone to Firmware 3.0 through iTunes
3. Plug in your iPhone and Run redsn0w
Additional Download Files [if needed]:
Firmware 3.0
Bootloader Files 3.9 and 4.6
Notes:
1. Do not install Icy since there is a compatibility issue with Cydia.
2. To Unlock your iPhone 3G and 3Gs use ultrasn0w
Ultrasn0w unlocks your iPhone 3G and 3Gs for use on any carrier



Follow the steps below to unlock your iPhone 3G and 3Gs:
1. Upgraded to iPhone Firmware 3.0 through iTunes
2. Jailbreak your iPhone 3G/3Gs using redsn0w
3. Add the repo repo666.ultrasn0w.com to Cydia
4. Search and install ultrasn0w in Cydia
5. Reboot your iPhone 3G/3Gs
Remember to thank the DevTeam.
Validating Rumors
Beginning March 26, 2009, you can expect to see the iPhone 3G sold without a contract and still locked to everyone’s least favorite carrier, AT&T.
The contract-less iPhone 3G will be available at a $400 premium over the subsidized iPhone 3G, which requires a two year commitment to AT&T ($199/$299). The new pricing model puts the 8GB iPhone 3G at $599 and the 16GB at $699.
Not surprisingly, it is still cheaper to buy an already unlocked iPhone 3G on Craigslist or eBay.
Before rushing into AT&T next week, think about the real value of an overpriced and soon to be outdated, locked iPhone 3G.
Prospective Purchases:
For the same price as a contract-free iPhone 3G from AT&T you can get:
Two MSI Wind netbooks (only because you install Mac OS)

200 tall soy hot chocolates from Starbucks

5 Harry Potter Hardcover Boxsets (Books 1-7)

1 Playstation 3 and Xbox 360


1 Wii and Wii Bundled with Wii Fit


3 Flip Video minoHDs or 6 Flip Video Ultra


4 Nintendo DSi’s

40 Snuggies (with 40 bonus book lights)

2 Amazon Kindle 2s

600+ iPhone Apps

215 slices of Famous Rays pizza (on 11th and 6th)
2 round trip tickets to somewhere in the U.S.
6 Broadway Musicals (12 if you use TKTS in Times Square)
15 trips to JFK Airport from anywhere in Manhattan
At least 75 total items featured on Dealnews.com
1 Labra-doodle
AT&T’s motives behind offering the iPhone 3G without a contract may center around their attempt to liquidate* the current iPhone 3G model, at a premium, before the new model is released, which as many predict, will be in June.
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*AT&T’s stated motives for contract-free pricing are: to cater to customers who would like to purchase a gift, add a line or are ineligible for an upgrade.
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