I had 1st gen IPhone unlocked using IFunstatic, Independence, etc. I was able to unlock using Pwnage 2.0. My IPhone has been exhibiting weirdness when trying to using my BMW's bluetooh (COMMUNICATION) to use IPhone as hands-free phone and IPod connection (ENTERTAINMENT) listening to IPhone's playlist thru car's speaker system. I've reset IPhone several times when the IPhone's display doesn't respond. I'm going to try re-pwning my IPhone using 2.0.1. update, hopefully that will help.
[UPDATE: 07/23/08 - I contacted BMW Customer Service and they indicated that the BMW bluetooth and IPod/IPhone functionality is not compatible with Apple 2.0 software. They also indicated that there is on method to upgrade the BMW bluetooth and IPod connection to be compatible with Apple 2.0 or IPhone 3G versions. So the BMW setup is not future-technology proof. So, I'm going to resort to using my standalone IPod and my IPhone as a separate bluetooth "phone" -- no IPhone music/podcasting
Here's a link to the information I found at
www.wireless4bmw.com
http://www.wireless4bmw.com/info/Cin...e_03.21.08.pdf