If you have an iPhone with 05.1107 (ie doesn’t work with Ultrasn0w) and want to unlock it, use Blackra1n.

The ETA of the application is mid-November. They have also added a FAQ on their website answering some of the questions their fans were asking:

1) What is sn0wbreeze?
sn0wbreeze is a port of PwnageTool to Windows, which was originally made for Mac OS X.
2) Is sn0wbreeze a unlock for the Baseband 05.11.07???
No.  For that go HERE
3) What devices does sn0wbreeze work for?
The iPhone 2G, iPhone 3G, iPhone 3G[S] (Only if Jailbroken on 3.0), iPod Touch 1G, and iPod Touch 2G.
4) Will this jailbreak the 3G[S] running 3.1 (Out of the box)?
No, However! GeoHot did start a new project called “blackra1n” --> HERE
5) Will this Jailbreak the iPod Touch 2G running 3.1 (Out of the Box)?
No, Arm7 Exploit is gone, because the iPod Touch, wants a Signed iBSS.
6) Will sn0wbreeze Upgrade My Baseband?
No, infact, sn0wbreeze Will NOT even give you the option to permit a baseband upgrade!
7) What does sn0wbreeze exactly do?
sn0wbreeze will create a Custom IPSW for your device, used to restore with iTunes. sn0wbreeze can customize your ipsw, to have the Partition Size, (How much space you can have reserved for Cydia), Hacktivation Option, Custom Boot/Recovery Images, and more to come!
Will this be For Mac/Linux Too?
There is already a Mac Version called “PwnageTool” (Which we are porting), and Why should there be a linux version? Theres no Linux iTunes! Damn Apple!
9) I’m Jailbroken on 3.0.1 by using redsn0w. Will sn0wbreeze work for me if I go to 3.1? Will I keep all of my Apps?
Yes, sn0wbreeze will upgrade you to 3.1 (Jailbroken), but, unfortunatly, when restoring it has to format everything because it has to re-partition the Phone (So you will need to re-install all your Apps).
10) Can I still use Unauthorized Internet Tethering on 3.1? (e.g AT&T)
You cannot use unauthorized Internet Tethering on 3.1, unless it is approved by your carrier. You can use third party software, such as: iModem when it is jailbroken!

The Video Demo:

sn0wbreeze is a port of PwnageTool to Windows, which was originally made for Mac OS X.
2) Is sn0wbreeze a unlock for the Baseband 5.11.07???
No.
3) What devices does sn0wbreeze work for?
The iPhone 2G, iPhone 3G, iPhone 3G[S] (Only if Jailbroken on 3.0), iPod Touch 1G, and iPod Touch 2G.
4) Will this jailbreak the 3G[S] running 3.1 (Out of the box)?
No, However! GeoHot did start a new project called “blackra1n” --> http://blackra1n.com
5) Will this Jailbreak the iPod Touch 2G running 3.1 (Out of the Box)?
No, Arm7 Exploit is gone, because the iPod Touch, wants a Signed iBSS.
6) Will sn0wbreeze Upgrade My Baseband?
No, infact, sn0wbreeze Will NOT even give you the option to permit a baseband upgrade!
7) What does sn0wbreeze exactly do?
sn0wbreeze will create a Custom IPSW for your device, used to restore with iTunes. sn0wbreeze can customize your ipsw, to have the Partition Size, (How much space you can have reserved for Cydia), Hacktivation Option, Custom Boot/Recovery Images, and more to come!
Will this be For Mac/Linux Too?
There is already a Mac Version called “PwnageTool” (Which we are porting), and Why should there be a linux version? Theres no Linux iTunes! Damn Apple!
9) I’m Jailbroken on 3.0.1 by using redsn0w. Will sn0wbreeze work for me if I go to 3.1? Will I keep all of my Apps?
Yes, sn0wbreeze will upgrade you to 3.1 (Jailbroken), but, unfortunatly, when restoring it has to format everything because it has to re-partition the Phone (So you will need to re-install all your Apps).
10) Can I still use Unauthorized Internet Tethering on 3.1? (e.g AT&T)
You cannot use unauthorized Internet Tethering on 3.1, unless it is approved by your carrier. You can use third party software, such as: iModem when it is jailbroken!

For all those who don’t know what Blacksn0w is, it’s the ONLY unlock for iPhones out their which unlocks users who have a baseband of 11.05.07. GeoHot, the creator, has just released the unlock to the world.

Here are all the details given by GeoHot:

blackra1n RC3 is also live for both Windows and Mac!!! Clean firmware 3.1.2 and baseband 05.11.07 are recommended.

Updates:
Unlock!!!
Hacktivation
Keep legit activation if activated before running app
15 seconds faster, you’ll feel it
Tiger + PPC support

Click here to download:

• Blackra1n + Blacksn0w (WIN) (244)
• Blackra1n + Blacksn0w (MAC) (38)

Guides:

• Windows
• Mac

#blacksn0w will work on both the 3g and the 3gs, unlock to any carrier

I know of quite a few people who are waiting anxiously for this unlock. Can’t wait for it!

The video showed an unlocked iPhone with baseband 05.11.07 however he could have simply film a factory unlock iPhone for his video. Fake or real?

He has also threaten the dev that if someone doesn’t contact his about the exploit in the next 24 hours he will post the exploit for everyone to see on his twitter. It is now 5 hours away from that point. You can view his twitter HERE.