Click to viewThe first free iPhone unlock software has been sold and successfully installed today by Mr Paul Taylor, from the UK. Giz was there as an exclusive witness, but when things went very wrong—and the process failed repeatedly giving a "baseband communication error"— I jumped in to help. After some troubleshooting we identified the problem—and I am afraid that it could mean that the software unlock may not work with all SIM configurations. [Updated Sept. 11, 02:52AM EST: iPhone Sim Free has issued an application update to fix the problem we discovered during unlocking. Jump to see their statement.]
Nobody has told you this yet, but as I discovered, not everyone would be able to apply the iPhone Sim Free patch to unlock the iPhone. The key seems to be in the SIM card's PIN. If you can disable it, everything seems okay to go. But if you can't, it looks like you should have to forget about the iPhone Sim Free software for now. [UPDATED BELOW]
As I was able to see today, the customer experience to unlock an iPhone is not pretty. In fact, it could be absolutely awful because most final users don't know anything about SSH, SFTP or the Terminal. If you already have your iPhone jailbreaked using a software like iFuntastic for Mac (current version doesn't work with iTunes 7.4) or iBrickr for Windows, installing the application will be a breeze: just drag and drop it inside the Applications folder inside your iPhone.