Well Here is big surprise, early morning we had said that yellowsn0w 3.0 will be the tool to unlock iPhone 3G OS 3.0 however after watching live demo from muscle nerd one thing we are sure that yellowsn0w is replaced with Ultrasn0w.

Here is demo video of Ultrasn0w on Qik from iPhone Dev team member Muscle Nerd. The video is big leggy and loading very slow so have patience.

The bug used by Yellowsn0w to inject code in iPhone 3G 2.2 was closed by apple in latest iPhone running fixed firmware rendering yellowsn0w unusable for unlocking. However iPhone dev team once again found a new hole in iPhone 3G 3.0 to inject similar payload code used in yellowsn0w and the new soft tool to unlock iPhone 3G OS 3.0 is named as Ultrasn0w.

The story of finding hole in new iPhone OS 3.0 is quite interesting , The hole has been found by one of iPhone User accidentally, while tempering around with iphone Commands and Mincom he found that his baseband getting jammed and resulting into iPhone reboot, now this bug has been formulated to inject code for unlocking iPhone 3G 3.0.

The Ultrasn0w iPhone 3G 3.0 Unlock tool will be released on Friday 19th, till that time you may upgrade your iPhone 3G to firmware 3.0 but need to wait for unlock till Ultrasn0w is released.

Update:- Ultrasn0w has been released by iPhone Dev Team. Check out How to Download Ultrasn0w.