Here is some good news for iphone user now recently iPhone Dev Team has released Redsnow 0.9.6  to Jailbreak iOS 4.2/ iOS 4.1/ iOS 4.0 on iPhone 3G, iPod Touch 2G, It uses the same old Pwnage2 DFU-mode exploit that has been using in previous versions of Redsnow, so it won’t work on new idevices i.e., iPhone 3GS, iPhone 4, iPod Touch 4G etc.

For installing Redsn0w  you must have downloaded Redsn0w 0.9.6 beta 1 firmware from the link here , iPod Touch 2G or iPhone 3G with iOS 4.2/ 4.1/ 4.0 firmware,  iTunes 10 to install Redsn0w 0.9.6.

Redsnow 0.9.6 supports the following iOS versions and idevices:

• iOS 4.0
• iOS 4.1
• iPhone 3G
• iPod Touch 2G