pHEvilBoss has released a one click iPhone 3G baseband downgrade solution in Cydia
If you accidentally upgraded your iPhone 3G to firmware 2.2.1 through iTunes and lost your yellowsn0w unlock, you no longer have to be stuck with a featureless iPhone 3G.
Remember the time Lois died, so Superman flew around the world in the opposite direction of the earth’s natural spin and turned back time to save her? It’s kind of like that.
The 3G Baseband Downgrader reverses your iPhone 3G Firmware 2.2.1 Baseband update from 02.30.03 back to the yellowsn0w unlockable 02.28.00.

In Cydia, do a search for the “3G Baseband Downgrade” which is hosted by BigBoss (Sleepers.net).

Make sure your iPhone 3G has Bootloader 5.8. (If your iPhone was manufactured before September 2008, you have 5.8).

If it came with 2.2.1 out of the box, you may have Bootloader 5.9 or later, which can not yet be downgraded. You can also check using Minicom.

pH (Pedro Henrique Franceschi) released a version a week ago that required you to ssh into your iPhone and run a package through terminal.
Today the automated version was released in Cydia.
