ZiPhone 2.5c: How To Jailbreak & Unlock Your iPhone 1.1.2, 1.1.3 and 1.1.4
Hello fellows, Ziphone application is the latest iPhone jailbreak and unlock in just minutes.
No downgrading then upgrading! You can do the unlock from 1.1.2, 1.1.3, or 1.1.4. It will also jailbreak and activate as well as install Installer.app for you!

ZiPhone performs all these functions:
- Unlock will work on 4.6 BL or 3.9 BL
- Jailbreak will work on any OS version.
- Activation will work on any OS version, except for youtube on 1.0.X.
- iErase BL 3.9 Baseband
WARNING: THIS TUTORIAL WILL DOWNGRADE YOUR BOOTLOADER TO 3.9!
Step One
Download ZiPhone (Windows and Mac) from: Here
Step Two
Double click ZiPhoneWin-2.5b.exe (ZiPhoneOSX-2.5c.tbz for make) on your desktop, you can either extract or install it to Program Files.

Step Three
From the ZiPhone folder double click ziphoneGUI.exe to launch the application.

Step Four
Make sure you iPhone is connected to the computer and that iTunes has detected it.
Step Five
You can now activate, jailbreak, and unlock,! Just simply click the Do It All! button. 
Step Six
The program will now load zibri.dat. Then it will search for the iPhone. Once found it will start the unlocking process should take around 4 to 6 minutes.

Step Eight
After completion iPhone will reboot and it will be activated, jailbroken, and unlocked!!!!

NOTE*: Make sure after completion make sure you install BSD Subsystem first then OpenSSH from Installer.app
Checkout the video below, it will show the entire process.
Via iClarified
i have the 8gb iphone 3.0 and im trying to use ziphone but everytime i click do it all, its gives me an error that can not find the iphone. iphone is already connected and itune is poping open everytime I connect it to my computer.
Help please
hwy.plz help even i am having the same problem!!!!!