To unlock your iPhone 2G for free in order to use any SIM card, follow all the steps in this tutorial. You’ll need the latest version of iTunes installed on your PC before starting.
Step 1 :
Create a folder on your desktop and name it Pwnage.
Step 2 :
Use the free browser Mozilla Firefox to download these files in the Pwnage folder on your desktop :
Step 3 :
Launch iTunes(8.2 or the latest version required) > select your iPhone under Devices in the left panel > right-click on the iPhone in the left panel and select Back Up > a backup of your iPhone will be created, wait until it’s finished.

Step 4 :
In the Summary panel : hold down the Shift key on your keyboard and click on Restore > a new window will appear, you can let go of the Shift key. Select the firmware 3.0 for iPhone 2G in the Pwnage folder and click open :


Step 5 :
Do not disconnect the iPhone from the computer ; do not close iTunes > the iPhone will be restored. The restoration might take some time.
Step 6 :
Once the iPhone has been restored, it will appear in iTunes > close iTunes(iTunes might show you that that SIM in the iPhone cannot be used to activate the iPhone > close iTunes).

Step 7 :
On your desktop, open the Pwnage folder, use a software like 7-zip or WinRAR to unzip the content of redsn0w-win_0.8.zip in the Pwnage folder > you will then obtain a folder called redsn0w-win_0.8 > open the redsn0w-win_0.8 folder > click on redsn0w.exe to launch the software.
On Windows XP or previous version of Windows, you should download and install .net before launching redsn0w.exe.
Step 8 :
On redsn0w, click Browse > navigate on your desktop and open the Pwnage folder > select the Firmware 3.0 for iPhone 2G click Open :

Step 9 :
On redsn0w, click Next > select Install Cydia and Unlock then click Next :

Step 10 :
Next to 3.9 Bootloader, click Browse > open the Pwnage folder on your desktop > select the BL-39.bin file and click Open. Then next to the 4.6 Bootloader, click Browse > open the Pwnage folder on your desktop > select the BL-46.bin file and click Open. You can now click Next in redsn0w.

Step 11 :
Make sure the iPhone is connected to your computer, then turn it off. When the iPhone is off, click Next in redsn0w :

Step 12 :
A set of instructions will then appear on redsn0w, you’ll have to follow them as they are shown in bold :

If you miss them > an error message will appear, click OK > then Next, and you’ll have to redo the instructions given :

Step 13 :
Once you’ve done the given instructions, the jailbreaking process will start > do not disconnect the iPhone from your computer and do not use the iPhone :

Step 14 :
On your iPhone, you’ll have a couple of animations(pineapple running, etc…) > do not touch anything > once the process has finished > the iPhone will restart by itself then display a BootNeuter page, once again, do not touch anything > the iPhone will then restart for a second time and you’ll have access to your Springboard.
On redsn0w, you can click Finish to close redsn0w :

Step 15 :
Your iPhone is now unlocked > you can launch iTunes on your computer to restore your data on your iPhone.
You can now use any SIM card on the iPhone. You’ll also notice the icon of a new application on your SpringBoard called Cydia. Use Cydia to download thirty applications not available on the App Store if you want.
