Finally, the tool to jailbreak iPod Touch 2G and iPhone 3G running iOS 4 is here, the Redsn0w 0.9.5 B5. The latest version of Redsn0w 0.9.5 B5 can bu used to unlock iOS 4 running on iPhone 3G and iPod Touch 2G (iTouch).
Yet, the ability to unlcok/jailbreak iOS 4 on iPhone 3G and iPod Touch 2G is beyond it’s limit as multitasking and homescreen wallpaper are now turned on by default.
Redsn0w 0.9.5 can only jailbreak and not hactivate your iPhone, you should not attempt to update to iOS 4.0 GM if you are not on official carrier. And here it is download links of Redsn0w 0.9.5 B5 to jailbreak your iPhone 3G and iPod Touch 2G running iOS 4.
Download Redsn0w 0.9.5 B5 (Direct Link)