Apple has released iOS 4.0.2 and iPad 3.2.2 without updating baseband, which means that Ultrasn0w 1.1.1 can still be used to unlock Jailbroken iPhone 3G and iPod Touch 2G running on iOS 4.0.2. The new Ultrasn0w 1.1.1 unlock baseband 05.13.04 on iPhone 3G and iPod Touche 2G. Only iPhone 3G and iPod Touch 2G can be jailbroken on this latest firmware using the latest version of Redsn0w. Thus, iPhone 3G can only be unlocked on iOS 4.0.2.

How to Unlock iOS 4.0.2 iPhone 3G, iPod Touch 2G with Ultrasn0w 1.1-1

Step 1 - Jailbreak your iPhone 3G or iPod Touch 2G with Redsn0w. Follow the step here
Step 2 – Start ‘Cydia on your jailbroken iPhone 3G or iPod Touch 2G springboard
Step 3 - Select ‘Manage’ tab at the bottom of your iPhone screen and then select ‘Sources’
Step 4 - Select ‘Edit’ and then select ‘Add’. Now enter a URL source. Type ‘repo666.ultrasn0w.com’ and select on ‘Add Source’. Once Cydia has added the source click on ‘Return to Cydia’ button
Step 5 - Once the installation is completed. Search for ‘ultrasn0w 1.1-1′ in Cydia and install it
Step 6 - This app will automatically carrier unlock your jailbroken iPhone 3G and iPod 2G
Step 7 - Reboot it [via]