Well at least for this release, the “modmyiphone.com”:http://modmyiphone.com/wiki/index.php/Main_Page reports that you can now unlock it. The only real hangup is that you can’t unlock 1.0.2 first as the “guide”:http://modmyiphone.com/wiki/index.php/Dev_Team_Jailbreak_1.1.1_OSX says you need to start with a virgin 1.0.2 build without any new firmward in 1.0.2.
So the steps are to take a vanilla iPhone with 1.1.1 software and 1.1.1 Baseband firmware. Then you downgrade to 1.0.2 software and baseband firmware. Then you run Insaller and then take the 1.1.1 upgrade but don’t install it then go to a conceitedsoftware.com site which uses an exploit in Safari to jailbreak your phone.
So first if you have a jail broken phone, you have to “restore”:http://modmyiphone.com/wiki/index.php/Downgrade_iPhone_1.1.1_to_firmware_1.0.2 both the 1.0.2 firmware and software and then follow directions. What a lot of work, but at least you get to 1.1.1’s new features like the wireless iTunes store (which I’d never use anyway), but many enhancements now require 1.1.1
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