Seems easy if you follow these intstructions from iClarified. The problem is, it doesn’t unlock the iphone. it just jailbreaks it so you won’t get a signal if you’re not on AT&T.
The next problem would come in because of iTunes 8. You would get the following error while restoring from a custom firmware:
- The iPhone “iPhone” could not be restored. An unknown error occured (1600).
- The iPhone “iPhone” could not be restored. An unknown error occured (2001).
I was able to fix this by doing the following steps:
- restore using default firmware of iTunes
- jailbreak using quickpwn
- use pwnagetool to create the custom firmware
- restore firmware using itunes again, this time using the alt-click button to use the custom firmware
- start using your unlocked iphone 2g on 2.1 firmware, yey!

