The iPhone Dev Team released new versions of PwnageTool & QuickPwn this morning. The PwnageTool will allow you to unlock and jailbreak your 1st Gen iPhone/iPod Touch and run the newest firmware 2.1. If you have the iPhone 3G these tools will allow you to jailbreak only (for now).
(Mac OS X)
The install is pretty straight forward. Before you run Pwnage you must download the lates 2.1firmware from Apple. You will also need the bootloader files BL-39.bin & BL-46bin. PwnageTool will then create a new custom firmware.
To install your new custom firmware you must put your iPhone into DFU mode. If your iPhone has not been Pwned use the PwnageTool to boot the phone in DFU mode. If your iPhone has been Pwned you can boot into DFU mode by connecting your iPhone via USB connector and power it down. Power your phone back up but hold the home button down until you see the Connect To iTunes screen or the Angry Steve Jobs screen. iTunes will detect a iPhone/iPod in restore mode. While clicking on the option button hold down “Option” This will allow you to choose the Custom_Firmware_ 2.1.