The devs have posted up a video of their latest progress towards an iPhone 3g unlock. The video is of their PMB8878 baseband tool.
[ame=http://www.vimeo.com/2069634]3G Baseband Tool on Vimeo[/ame]
The baseband tool allows communication with the baseband via AT commands. The video shows an AT command that has been inserted into to the PMB8878 that starts and application on the basband.
Let me sum it up. The dev team has made some awesome progress towards making a software unlock for the iPhone 3g that much closer to reality.