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How to Hack your iPhone:
(on a Mac running Leopard with iTunes 8 installed)Hacking your iPhone allows to you run apps from Installer.app and Cydia, as wellas cracked AppStore apps (IPA files). It's very easy to do, here is an overview:1. Upgrade your iPhone's Firmware to 2.12. Run Pwnagetool with your iPhone plugged in to create a Custom Firmware3. Restore the Custom Firmware to your iPhone4. Setup the IPA hack (requires Wifi connection)
Software Links:
You'll need PwnageTool for Mac, the bl39 and bl46 bin files, the appropriate 2.1firmware for your iPhone model, and Cyberduck. Just go ahead and save them inthe same folder on your desktop. Make sure your Mac is running Leopard and hasiTunes 8 installed as well. Here are the links:Pwnage Tool for Mac:http://blog.iphone-dev.org/post/49988701/pwnagetool-and-quickpwn-for-2-1-firmwarebl39.bin and bl46.bin files:http://www.iphone-hacks.com/downloads/category/3iPhone Firmware 2.1 for 1st-Gen "EDGE" model:http://appldnld.apple.com.edgesuite.net/content.info.apple.com/iPhone/ 061-5202.20080909.gkbEj/iPhone1,1_2.1_5F136_Restore.ipswiPhone Firmware 2.1 for 2nd-Gen "3G" model:http://appldnld.apple.com.edgesuite.net/content.info.apple.com/iPhone/ 061-5198.20080909.K3294/iPhone1,2_2.1_5F136_Restore.ipswCyberduck:http://cyberduck.ch/ 
How to Jailbreak:
First, upgrade your iPhone's Firmware to 2.1. You can do this by Alt-Clicking theRestore Firmware button in iTunes and selecting the appropriate firmware for youriPhone mode (1st-Gen "EDGE" or 2nd-Gen "3G" model).
 
Next, run Pwnagetool with your iPhone plugged into your computer. Select youriPhone model, find the BIN files in the BIN folder (it should do this automatically),select your iPhone's firmware (just click on the one in the Pwnagetool window), andlet it get to work - just follow the instructions. It will take a few minutes to extract thefirmware and customize it; when it is done it will let you know. There will be acustomized firmware on your desktop upon completion.Now you have to install the custom firmware to your iPhone. Open iTunes and Alt-Click the Restore Firmware button in iTunes, but select the customized firmware onthe desktop this time. After rebooting, you will see Installer.app and Cydia on youriPhone screen. Run all of the updates required for both apps and then downloadCommunity Sources (use the Search feature) to get an updated list of free apps.
IPA Hack:
Now you have to setup the IPA hack so that you can run cracked AppStore apps.This is easy, but since I have to write out the steps it looks a bit complicated. First,install OpenSSH from Cydia (use the Search feature again) and reboot youriPhone. Next, find your iPhone's IP address (Settings > Wifi > "Network Name" > IPAddress) and jot it down somewhere. Before going on, we are going to setup theiPhone to "Never Lock" temporarily so that it won't fall asleep on us while we'redigging around inside the files (Settings > General > Auto-Lock > Never).So now your iPhone is awake and has OpenSSH running so that we can modify afile inside the iPhone. Open Cyberduck, go to File > Open Connection, and type inthe following:Protocol: SFTP (SSH File Transfer Protocol)Server: 192.168.1.106 (or whatever your IP address is)Username: rootPassword: alpineWhen you connect with these settings, it will ask you what to do regarding the"Unknown host key". Just click "Always" to always allow it to connect. You mayhave to try connecting multiple times to get it to work. The default login actuallytakes you the "/private/var/root" folder, but we want to be in the "/" root folder, so goahead and select the root folder from the drop-down location menu in Cyberduck.Next navigate to the "/System/Library/PrivateFrameworks/ MobileInstallation.framework". Note that "MobileInstallation.framework" is a folder,not a file, so double-click to go inside of it.Find the file named "MobileInstallation" and rename it to "MobileInstallation.bak".Copy the "MobileInstallation" file from this software kit into the folder to replace theone you just renamed. Next, change the permission of this file to "775" by right-clicking on it and selecting "Info". Make sure it's "775", not "755" and not "777". Onyour iPhone, go back into Auto-Lock and reset it to 1-minute or whatever your

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