Jailbreaking and unlocking iPhone 3.0 is going to be a huge race between unlocking hackers. The beta has been cracked, but the final release isn’t out from Apple yet so we’ll see who crosses the line first.

Check back here for updates.

I installed the long-awaited, milestone iPhone software 2.0 on my iPhone and my friend’s using PwnageTool 2.0.1 by the iPhone Dev Team, and this iphone-hacks.com PwnageTool tutorial. Both phones are first generation 16GB iPhones. I used various tutorials during my two 2.0 upgrades, but iphone-hacks.com was the best.

The first time takes around 30-45 minutes, but be patient and keep moving through the instructions. Important: when you get to the question Are you a legit iPhone user? the answer, if you’re on T-Mobile, is No. In fact, if you’re anything but a legitimate ATT contract user, choose No.

Then at the end (after the final step in the iphone-hacks.com tutorial), iTunes asked me if I wanted to restore from a current iPhone or create a new iPhone. I chose current, which put all my contacts, music and photos back onto my phone. (My first inclination was to choose New.)