The iPhone Dev Team just released PwnageTool 2.0 which enables iPhone 3G users to jailbreak their devices. This latest release also jailbreaks iTouch, and jailbreaks and unlocks the first iPhones.
According to comments at the blog, only Macs are supported for now, so Windows users will have to wait.
There should be an official announcement from the team later on, but for now download the PwnageTool 2.0. At the blog you can find tons of mirrors in the comments.
Oh, and here's an announcement regarding the software:
If you get Error 1600 from iTunes, try: mkdir “~/Library/iTunes/Device Support” ; if that directory already exists, remove any files in it. Then re-run PwnageTool.
Enjoy!
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