First, as it is said in the title, this tutorial is only for the upgrade and unlocking of original iPhones (with metallic back) to iPhone OS 2.0. The process for 3G is slightly different and I will post the tutorial soon!

And, obviously, you do all this at your own risks!!

So, where to start?

1. You need to get the OS system file (iPhone1,1_2.0_5A347_Restore.ipsw). To do that, start iTunes 7.7 (if you have an earlier version, please update), plug your iPhone in and check for update. iTunes will find an update and ask if you want to update your iPhone. Click “Yes” and once the download has started, UNPLUG YOUR IPHONE!! Wait until the download has completed and then quit iTunes.

2. (Optional) If you don’t want to be annoyed by iTunes all the time, kill iTunesHelper (open Activity Monitor (in Utilities) and “Force quit” the iTunesHelper process). iTunes will stay quiet until next time you restart your machine…

3. Plug again your iPhone to your computer, start Pwnage Tool 2.01 (download Pwnage_2_01, including the bootloader files) and select “Expert mode” and the iPhone image on the left. Then click on the right arrow.

4. On the next screen, Pwnage will search (and find ) the 2.0 system file that iTunes downloaded in step 1. Click on the right arrow to continue.

5. On the next screen, double click on “Custom Logos” if you don’t want the application to replace the “Apple” boot logo with a pinapple….

6. Deselect “Boot logo ” and “Recovery logo”.

7. Click on the blue arrow to go back to the main menu. Select “Build” and click on the right arrow to start the building of the new system file. You will be asked to save the new file on your disk.

8. Wait until the process is finished. You will then be prompted to “Pwn” your iPhone. Click “No” to proceed.

9. You will be asked to switch off your iPhone and put it in recovery mode. Simply follow the on-screen instructions to make sure it works out!

10. Once this is all done, you can quit Pwnage Tool and restore the newly created system … with iTunes!

11. Start iTunes, click “Restore” while holding the “Option” key on your keyboard. Select the “.ipsw” file that was created by Pwnage Tool and let the magic happen!

12. Once the restore is completed, iTunes tells you that your phone will reboot. Quit iTunes quickly while your phone reboots.

13. Once it has rebooted, the iPhone starts a few applications that will unlock it. Just let it complete the process (it takes a few minutes), the iPhone will reboot… and that’s it!! Enjoy!!

But, be aware: the process is not as simple as ZiPhone… Be careful!

And, I have only tested it on my 1st gen iPhone. Haven’t received my 3G iPhone yet !

Basically, the principle of the Pwnage tool is quite easy:

1. You “PWN” your iPhone running system 1.1.4: this operation alters the phone’s bootloader and “breaks” the check of signed software. After this operation, the phone will let you install any unsigned ipsw file via iTunes.

2. You create a custom 2.0 system file that will activate, jailbreak (=make the system read/write) and unlock the baseband (allowing it to run on any GSM carrier).

3. You put your phone in recovery mode, and restore the custom IPSW file directly from iTunes

4. Once it’s done, the phone unlocks itself and here we go!

So far, everything worked fine on mine, including AppStore!

You can download all the stuff needed (for Mac…) here: Pwnage 2

A full tutorial (with screenshots) will follow soon!