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If you had been waiting for the unlock for your iPhone, then have a breather as yellowsnOw, the unlocking software makes its way through. The software runs in the background and runs on any jailbroken iPhone 3G. Make sure you are running the latest software and your device is jailbroken using the QuickPwn 2.2. The Dev Team has placed a detailed blog post about this and the operation works fine for every SIM save for those that run STK application menus. Here is a mention from the post:

* There is a known issue with SIM cards that have STK (SIM Toolkit) application menus.  These menus are usually items such as “top up” “get credit” “lotto numbers” etc. These menu items confuse the application sometimes.  Removing and reinserting the SIM once after reboot (give it about 10 secs 60 seconds (with v0.9.1) after you see the slide to unlock widget) fixes this issue.  We’re working on a better fix.
* For those of you using SIM cards without STK menus, the application has some optional arguments that will make the unlock much faster for you.  So either experiment on your own (use “yellowsn0w -h” for usage) or wait for a customization writeup.
* After you install yellowsn0w via Cydia, you should return to the Cydia main menu then reboot your iPhone with the 3rd party SIM installed.  Wait for the slide to unlock screen, then wait 10 or 15 secs more.   If you don’t see your carrier name pop up, then remove your SIM, reinsert it, and wait 10 secs more.  This is the step we’ll be working on eliminating next.