Background:
Is this gonna work on your iPhone?
Yes, this method should be working with all iPhones (there are even positive comments from 16GB iPhone owners). Just a note for 1.1.2 OOTB 4.6 BL owners, the BL is gonna be downgraded to 3.9 version (however that doesn’t affect any functionality at all).
Do you need to keep your xxx-Sim (if any) inside the iPhone?
No, this is a pure software unlock method, you should remove it before starting the process.
Why bother and install 1.1.4?
You get all 1.1.3 enhancements (multiple SMS recipients, moving icons around, web shortcuts, Google Maps GPS-like locator). Plus you get the bug fixes from 1.1.4 (better signal strength, correct SMS order etc.).
How-to:
Step 1:
Download the two required files: iPhone 1.1.4 firmware, ZiPhone 2.5
Step 2:
Connect your iPhone to Mac or PC, and backup/sync your phone with iTunes to save all your personal settings, contacts, SMS etc.
Step 3:
Press the Shift key on PC, or Option key on Mac, and click on Restore in iTunes. Select the downloaded 1.1.4 file.
Step 4:
Close iTunes, and run ZiPhone. Select the “do it all” option from the GUI.
Step 5:
Restore your backed-up settings with iTunes.
This is it, enjoy your fully unlocked 1.1.4 iPhone!
Step 6 (Optional):
You might need to use the Installer, to install first the BSD subsystem, and then the AppSupport (iClarified source) for 1.1.4 if you are on an unsupported country.
This is currently the most simple jailbreak/unlock method.
In case that you encounter any unexpected problems or have other questions, always check the Hackint0sh forum.

[...] Easiest way to ‘Jailbreak’ and Unlock your iPhone in 5 steps while giving AT&T the f… [...]
Great explanation, everything sounds interesting. One thing you did not mention is why? Why jailbreak the phone in the 1st place? Is it because you can?
/N
Jailbreak/unlock it so that you can install custom applications and use it with any SIM/network, anywhere in the world.
My SMS listing display sometimes takes 5 to 10s just to appear? Anyone else experiencing this?
Thanks.
–cp
[...] latest of the easy exploits for 1.1.4 is here. Now if only Apple would provide a solar charger case for the thing, battery life wouldn’t [...]
Is there a similar 5-step “Easy-Button” for the iPod touch?
Thanks!
If I had an iPhone I’m sure I’d find this useful rather than paying the ridiculous tariffs.
Hi My Iphone is getting Hang…..everyday and no key function works untill battery is completely used up………what will be the reson can anyboby please help me out…..
Ratty
Wow this was very useful. I also used this site that i found called http://www.iphonenewsvault.com. It helped me with it too.
are you sure this works.. im scared @!