So things go back and forth. Ultrasn0w has been updated and is even better yet! First, dev team has removed the daemon and used a method more similar to Geohot’s purplesn0w method. However, they did it in a manner that seems safer as it will not corrupt memory and uses less memory. From dev team blog:

To put it into perspective, ultrasn0w uses 152 bytes of properly malloc’d baseband RAM, which is 0.015% of what purplesn0w uses. Put another way, purplesn0w uses 6900 times more RAM than ultrasn0w (and doesn’t let the O/S know that it’s using it, so the O/S still thinks it’s free to use. When it does use it, the baseband will crash).

Also, there is another benefit. This uses mobile substrate to patch CommCenter unlike Geohot’s method which actually patches the CommCenter file. The benefit of this is that you are not modifying your system files and it is very easy to uninstall safely. You could probably just disable it with SBSettings mobile substrate menu as well.

I consider the current ultrasn0w the recommended unlock.

Geohot released a better 3gs unlock. It installs with his Cydia repository and patches some files on install. After this, no process or daemon is left running. This sounds like a better replacement for ultrasn0w. However, unlike ultrasn0w, it cannot be disabled with a toggle. A restore will restore the iPhone to stock locked state. Sounds very nice. Here are details from his site:

Wifi fails? Battery fails? Unlock fails? You need purplesn0w, the geohot 3GS unlock solution. Now I know you here a lot about different colors of sn0w, but I’m here to tell you why purplesn0w is the best. First off, what is purplesn0w? It’s a soft unlock for your 3GS that I’d actually use day to day. It’s not a daemon that takes any resources, and it doesn’t add a task to your baseband. It’s very close to a true unlock. All it does is patch three files, CommCenter, lockdownd, and your wildcard activation plist(which you need, activate w at&t sim first, no hacktivation support yet). That’s it, no other files are installed. Props to Oranav for the at+xlog exploit!
A full explanation is coming soon, but I think you clever reversers out there will see what it does, and see why it’s so pristine :-) The payload is radically different from other varieties of sn0w. beta as usual, back up first.

Be sure to have legit activated 3GS
Disable 3G if you don’t have it(like T-Mobile).
Add apt.geohot.com to Cydia
Install com.geohot.purplesn0w
Watch for success output in Cydia
Reboot, and enjoy your unlocked iPhone

Fuzzyband has been updated and is now 3.0 ready.  It’s feature set has changed a little as yellowsn0w is deprecated. Features: Upgrades / Downgrades baseband to 4.26.08 for unlocking with the ultrasn0w tool released by the iPhone Dev-Team UPGRADING: Upgrading is for users that wish to remain on 2.2.1 but also unlock.  Upgrading will put the 4.26.08 baseband from [...]

I have made some minor updates to SBSettings tonight, but the major feature is the new “Free Memory” button in the processes widget. With this you can free up system memory without killing tasks.

Here is an example (note the free mb number in the statusbar):

We start with 3 processes running and 24mb free.

After hitting the button, we are down to 40mb free. Open SBSettings and still 39mb free and the same 3 processes still running.

8 July 2009 Added a new Close (X) icon in Quick Compose and Quick Reply, such that the [Call] option is now a permanent button. The [Call] feature is now back in Quick Compose and Quick Reply. You can now add smileys in Quick Compose and Quick Reply. If typing a free format number in [...]

We are proud to announce that iReal got LANDSCAPE QuickReply and QuickSend. As the inventors of “SMS from any App” it was only logical to put in the great effort that was necessary to achieve a solution for this as smooth as it is now. It was quite a challenge to get this working on [...]

The dev-team’s jailbreak for 3GS is released. You can view the guides and download the binaries from here.

This jailbreak supports 2g, 3g, 3gs, and iPod touch 2 on 3.0. Key features:

1) Stable jailbreak tested by dev-team
2) Icy + Cydia problem solved (we think).
3) Ultrasn0w tested and working on 3gs
4) Proper kernel patches which will enable logome (after it’s updated for 3.0).
5) Mobile Substrate + Winterboard now working on 3gs.

Again, for download links and redsn0w installation guide, go here.

Note: If you used purplera1n RC2 or newer, you do not need to redo your jailbreak. You will be unable to use logome in the future, but that should be the only downside. If you used purplera1n RC1 or older, you should redo your jailbreak. I believe you can run redsn0w right over the top of it.

FlowChat is by far the best internet chat (IRC) client for the iPhone and iPod Touch. I have personally been testing this IRC app for months. It feels more like a real desktop client than a mobile IRC clients. It’s really good. FlowChat combines a gorgeous interface with an extensive feature list that rivals that of most desktop chat clients.

Upload and share photos and screenshots immediately with your friends, type in either portrait or landscape mode, visit links and browse the web without leaving FlowChat using the embedded web browser, autocomplete commands, channel names and nicknames, use one of the 5 bundled themes or create and install your own on-the-go, manage user and channel modes, or even get down and dirty with an unfiltered console view. And all of this from a sleek and elegant interface designed by professionals committed to bringing you the best possible internet chatting experience.

Here are some of the features:

• Awesome user interface
• Monitor multiple chats with one glance
• Chat in portrait or landscape mode
• Manage your channels from a beautiful interface optimized for the iPhone
• Fantastic desktop-style nickname, channel and command autocomplete
• Share photos and screenshots with your friends
• Extensive logging with full search
• Supports all IRC commands
• Full support for SSL connections
• Full support for psyBNC, ezbounce, znc and all other IRC bouncers and proxies

Available in appstore here.