The iPhone Dev Team has been hard at work since the iPhone 3G was released back in June. They now have the most exciting news to report so far, you guessed it an unlock for the iPhone 3G. Just how long will we have to wait before seeing this unlock for a public release?

They have set the release date of their free unlocking tool for New Year’s Eve 2008. They have codenamed the unlock “yellowsn0w.” They are packaging the unlock method into a user-friendly applications much like the QuickPwn that everyone will be able to use.  As they warned before, the unlock is only for the iPhone 3G with a baseband of 2.11.07. To figure out which baseband you have, simply go to Settings-> General-> About-> Modem Firmware.

The unlock can only be applied to jailbroken iPhone 3G handsets via Cydia. Those of you who have update their Mac to OS X 10.5.6 will have to find an alternate method as this version disables DFU mode, a vital step in the jailbreaking process. The iPhone Dev Team believes the issue with DFU mode to be triggered by a kernel bug rather than countermeasures made by Apple. There is a way to fix this issue for those of you who are brave enough to attempt it.