The iPhone-Dev team have posted a small update on their blog, just keeping us informed about whats happening. Click More to see the blog post
Here’s what they said on their blog.

We’d like to update you on what we’ve been doing for the last week or so and bring you up to speed with a couple of work-streams.

Things are certainly hotting up in the DevTeam with most of our members being able to obtain 3G iPhones, which means a distributed workload and lots of fun for our team-members.

A week ago we posted a screenshot of an iPhone 3G being downgraded to an earlier firmware, we are able to execute code on the baseband in order to circumvent a security check that then allows us to flash the baseband to an earlier version, of course this isn’t a 3G unlock (as yet) but was a way to demonstrate the fact that we had extra control of the baseband. With all this upgrading and downgrading we were worried about bricks, so we’ve developed a method to dump the WiFi tables and the seczones so that a backup copy can be made, we were happy about this as it means now that we can modify without sweating, a successful recovery can be made at any point, with this out of the way, changing our underwear every 5 minutes isn’t necessary, so we are making really good progress towards the goal of a software based iPhone 3G unlock, we are working hard on it with no estimates of if and when it will be completed,  we’ll update you as soon as we know anything else so stay tuned and watch this space.

Over at the hackint0sh forums we’ve been monitoring the whole “SIM-card unlock” proxy-SIM situation, this involves using a chip that is attached to your SIM card (with a small modification to your SIM) or sometimes a small PCB soldered inside the phone, these are very very very questionable things to use, they use trickery of the GSM and UMTS network that is considered highly illegal in most countries and they rely on sending bogus IMSIs and various other nasty hacks to obtain service on your iPhone. A couple of our members have written something about how this “works” we’ll try to publish more findings soon. DevTeam recommendation: Steer clear, don’t use!

DevTeam members have an internal beta version of Installer 4 from RiPDev, it looks very nice, expect a release from them soon, we don’t have an exact date yet, but we’d estimate certainly not within the next few days and less than a couple of weeks. We’ve attached another couple of screenshots at the end in case you want to see more.

We are also testing an internal build of PwnageTool that with iPhone OS 2.1b2 (for first generation iPhones and also 3G models) unlock and jailbreak is working fine on the 1st Gen, with jailbreak working on 3G, this will be released in good time.

We are also looking for some help, are there any graphic designers/web-developers out there that could help us with a couple of things? We have lots of lovely postcards sent to us that we’d like to show you all and we’d like a nice site to show them off, we can’t pay anything as this is all a hobby, but if you think you are a good graphic designer/web coder/developer then send us an email to blog@iphone-dev.com perhaps with a link to your work and examples of your design.

So, sorry guys, no installer this week.