Engadget is reporting that a full iPhone software-only unlock is now available, courtesy of the iPhoneSIMFree.com
team, allowing owners to use their preferred network.
We can confirm with 100% certainty that iPhoneSIMfree.com's software solution completely SIM unlocks the iPhone, is restore-resistant, and should make the iPhone fully functional for users outside of the US.
Engadget tested the hack with an active T-Mobile SIM and was able to confirm that everything worked except for Visual voicemail and YouTube, although the latter can be manually activated following this guide
. The unlock method seems to be restore and upgrade resistant, too. Engadget factory-restored their iPhone with the 1.0.2 firmware and the unlock stuck around. You can see the complete notes on the install here