Dev-Team Blog
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Thanks for waiting :) 

Here you go. [appears to be down for now, we took link down until we can revive the poor wounded server]

We’ll be releasing a more official announcement soon, but we wanted to get the tool out there. We sincerely hope you enjoy using it as much as we enjoyed making it :)

Update 1: Just to clear up some confusion over what this actually does: yes, it jailbreaks and unlocks older iPhones, and jailbreaks iPhone 3Gs and iPod Touches. We only support the 2.0 firmwares.

Update 2: It looks like there aren’t enough TCP ports on that server, so _BigBoss_ has generously offered to it.

Update 3: If you get Error 1600 from iTunes (or if you see in your log a failure to prepare x12220000_4_Recovery.ipsw), try: mkdir ~/Library/iTunes/”Device Support” ;  if that directory already exists, remove any files in it.  Then re-run PwnageTool.  

Update 4: Here’s another mirror

Update 5: If DFU restores are giving you trouble, another route to pwned 2.0 for 1G owners is to use our first pwnage at 1.1.4.  Once you are pwned there, you  can do a normal recovery-mode restore to your custom 2.0 ipsw.  BTW the iPhone does *not* need to be pre-pwned to be able to DFU-restore into a pwned ipsw — it needs to be pre-pwned only for normal recovery-mode restores of custom ipsw’s.

Update 6: Mail application not working at 2.0?  Please restore to your custom ipsw (you don’t need to DFU restore if you are pwned, normal restore will work now too) but then select “Set up as a new iPhone” when iTunes asks.  Your first sync will bring back all of your settings anyway.

UPDATE: PLEASE USE 2.0.1 INSTEAD which is here