RedSnow has just been released. redsn0w is an easy to use, multi-platform, multi-device jailbreaking and unlocking tool for the iPhone 2G (original iPhone), the iPhone 3G (but not the 3GS) and also the iPod touch (first and second generation). Currently it is available for Windows and Mac OS X (there are some issues using redsn0w with OS X PPC, please use an Intel Mac until we have this problem resolved).

REDSN0W PROVIDES SIMILAR FUNCTIONALITY TO QUICKPWN.

Follow this guide to update to 3.0 OS. Don't forget to first update your iTunes to 8.2 or you will get restore error message.