There have been new releases of PwnageTool and QuickPwn that Jailbreak the 2.1 iPhone firmware.
I can confirm this new tool works I have just Jailbroken my 2.1 iPhone using it.
Head over to the iPhone Dev website for more info.
Personally I would not use any Jailbreak software to jailbreak the 3G iPhone.
I use jailbreak software on my 2G iPhone, I paid £250 for the phone (now replaced by my 3G iPhone) and feel I have the right to use it as a test bed. My 3G will always use Apple original software.
As for the opposition of iPhone-Dev there are only screenshots of XiPhone, will it ever be released?
You are welcome to share your views here.
All the very Best
Ernie
I haven’t jailbroken my iphone and I love it regardless ! Thanks for the info though