Dev Team Still Working on 3g Unlock
Unfortunately not all things come easy and quick. Don't worry though they are still working on an Unlock solution for the iPhone 3g along with a jailbreak for the iPod Touch 2g.
Over the weekend they hit a bit of a snag while playing around in the 3g baseband looking for an unlock solution. The baseband stopped responding the the iPhone OS completely.
Repeated restore attempts resulted in no change and only gave the dev team lists of errors. Somehow the hacking resulted in the SPI bus on the baseband chip to stop responding. Luckily simply updating the baseband and then downgrading fixed the issue.
While they have tried to repeat the error they have not had success and are going to continue working forward for the 3g unlock. You can read more at the iphone-dev blog
thanks Tony for the tip