OK, so I know it's possible, I just need to know if I can with the way my phone is currently set up. From my settings I see that my Version is 3.1.3 and Firmware 05.12.01 Can I unlock this bad boy?
So basically, you are saying to wait until later in June for a true unlock, however I can try an unlock now that isnt recommended? I have no problem waiting. I'm getting the iPhone 4 and am thinking of selling my 3G but my assumption is that I can sell it for a bit more unlocked. So, I don't mind waiting a little longer for a true, safe unlock.
what you can do is jailbreak it and like what slayoxus said, try fuzzyband from Cydia to see if you can unlock it. this is not risky at all. otherwise you can wait until next week.
Downgrade isn't risky it is just rare to have 5.08 bootloader since they were only manufactured for 3 months. And yes hardware unlock is complicated, you need materials, and risky.