How to: Newbie's Guide to Jailbreak
2. open iTunes 3. connect iPhone to computer 4. initiate & click "Restore" 5. back-up iPhone 6. open PwnageTool 2.0 (leave default "Simple Mode" - "Expert Mode" supports more manual installation options)
7. choose if you would like PwnageTool to automatically update in the future
8. select iPhone model (iPhone, iPod Touch, iPhone 3G)
9. select 2.0 firmware file used in step 4 (should auto-appear and display as "iPhone1,2_2.0_5A347_Restore.ipsw" for 3G or "iPhone 1,1_2.0_5A347_Restore.ipsw" for 1st generation)
10. answer "Are you a legit iPhone user?" (if you have a carrier contract, i.e. AT&T in the United States, then select "yes") 11. wait while the new custom .ipsw file is made (noteyou should not need to select & browse for the downloaded bootloaders with v2.0.1 which should auto-find them)
12. answer "Haz been pwned before?" (if you haven't pwned the device before, or you're unsure, select "no")
13. upon completion of custom firmware creation you will be prompted to turn off your iPhone (holding down the power button and then "swiping") to begin initiating DFU (device firmware upgrade) mode
14. after turning off your iPhone, you will be prompted to hold the "power" and "home" keys for 10 seconds
15. after 10 seconds, you will be prompted to let go of the "power" button and hold just "home" key for another 10 seconds
16. if you FAIL to get your iPhone into DFU mode you can retry and reconnect your iPhone via USB (by powering it back on) and repeat the instructions until you get it, otherwise you'll receive a success message telling you to open iTunes
17. now you'll need to open iTunes where you'll receive a pop-up noting that your iPhone is in Recovery Mode and needs to be restored, so restore to the custom firmware that PwnageTool just created for you (the .ipsw on your desktop) -- to do this hold down the "Alt(option)" button on your MAC's keyboard while pressing the "Restore" button with your mouse, this will allow you to browse and select the new jailbroken firmware.
18. wait for the restore to take place and complete, note Cydia & App Store on your Springboard, and rejoice... congratulations, you're iPhone has now been pwned!
Here's some fun errors you might receive along the way. You can always go back and restart the process from the beginning of either opening PwnageTool or restoring your iPhone with 2.0 firmware.