Update, 8/18/08: Firmware 2.0.2 was released today. Neither PwnageTool nor WinPwn support the 2.0.2 firmware in their current releases. This notice will be removed and the guide updated (if necessary) once the firmware has been jailbroken.
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There are quite a few guides out there that explain jailbreaking the 2.0 (and now some 2.0.1) software, but they're all quite confusing and incomplete. The first post in this guide is for Macs only and , uses PwnageTool 2.0.2, goes over jailbreaking both the 2.0 and 2.0.1 firmwares, and is written by me. The second post explains unlocking and jailbreaking the V1 iPhone and iPhone 3G on Windows using WinPwn - credit to iClarified, and the third is a Q & A along with explanations of the iTunes errors, credit to Macrumors.
By following this guide, you will get a firmware that will jailbreak your device, not unlock it. If you wish to unlock, do not disable BootNeuter.
Windows users: The following guide is Mac only. If you would like me to create an IPSW for you, simply state what you would like in the file (options, boot logos, etc.) and I will be happy to send it to you. Also, the second post in this thread is on unlocking a 2.0 iPhone on Windows. Credit to MacRumors.
There are two modes in the current release of PwnageTool:
Simple Mode - Simple Mode does not allow you to customize the firmware (use custom logos, etc.) I recommend you do not use this mode, however, if you want to, a guide on Simple Mode
can be found here.
Expert Mode - allows you to customize the firmware. We will use Expert Mode in this guide.
Devices that can be used with PwnageTool:
iPhone: can be jailbroken, unlocked, and activated.
iPod touch: can be jailbroken.
iPhone 3G: can be jailbroken and activated.
Required Downloads:
PwnageTool 2.0.2
2.0 firmware for iPhone V1
2.0 firmware for iPhone 3G
2.0.1 firmware for iPhone V1
2.0.1 firmware for iPhone 3G
Step 1) Sync and Backup
As always, sync and backup your iPhone before beginning the process. (What with the excruciatingly long backup times, you may want to start this an hour or so before you plan to use Pwnage.)
Step 2) Select mode and device
Open PwnageTool and click "OK" on the pop-up message that appears. At the top, select "Expert Mode" and then click on the device you have. (iPhone, iPod touch, iPhone 3G.) Now click the blue arrow.
Step 3) Select firmware
You will not be prompted to select the IPSW file (firmware) you wish to Pwn. PwnageTool will browse your disk for IPSW files and display them select whichever you want to run on your device. Firmware 2.0 will be named
iPhone1,1_2.0_5A347 and Firmware 2.0.1 will be named
iPhone 1,1_2.0.1_5B108. Click the blue arrow.
Step 4) Options Screen
You will now see a screen with several options. This is where you will build the custom firmware.
Step 5) General Settings
Click on the "General" button and then the blue arrow. Uncheck the "Activate the phone" option
(only do this if you are a legit AT&T customer). Click the blue arrow.
Step 6) BootNeuter Settings
NOTE: Skip this step if you want to unlock your iPhone. Uncheck "Auto delete BootNeuter.app" and "Unlock baseband." Then uncheck "Neuter bootloader." Click the blue arrow.
Step 7) Cydia Settings
You will now see the Cydia settings. Here you can have any packages available through Cydia pre-installed. Note that while PwnageTool 2.0.2 installs Installer, you cannot pre-install Installer packages with this release. Click the blue arrow.
Step 8) Custom Package Settings
You will now boxes for Installer and Cydia - by default, both are selected If you do not wish to install one (or both) simply uncheck them. Click the blue arrow.
Step 9) Custom Logos
Here you can select custom logos to use when booting the iPhone and when it is in recovery mode. The logo must be in the .png format, must be in RGB or Grayscale format with Alpha channel, must have a resolution lower than 320 by 480, and can be no larger than 100 Kb. Click the blue arrow.
Step 10) Build the IPSW
You are now taken back to the main options screen. Re-check all of your options and then click "Build" at the bottom and click the blue arrow. You will be prompted to name the firmware. The default name is fine, or you can give it a custom name. After a moment, you will be prompted to give your password. Do so, and the building will continue. Soon you will be asked whether or not your device has been Pwned before. If it has a custom boot logo, click yes. Otherwise, click no.
You will then be instructed to enter DFU mode by a series of screen. Follow the on-screen instructions to do so. You may have to try multiple times to make your device enter DFU mode.
Once you have successfully entered DFU mode, you will see the screen shown below.
Step 11) Restore from the custom firmware
Now you need to Restore your device with the custom firmware. Make sure your device is still in DFU mode and connected to your computer, and open iTunes. You will be told that iTunes has detected an iPhone/iPod touch in Recovery Mode and that it must be Restored.
While holding the Option key, click "Restore." This is will bring up a file browser. Use this to navigate to your custom IPSW, and select. Your device will begin to Restore using the custom firmware.
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If you are unlocking your device and chose to use BootNeuter, the process can take up to 30 minutes. Do not, at any time, during the process close BootNeuter. This will result in the permanent "bricking" of your device.
If you get Error 1600 from iTunes (or if you see in your log a failure to prepare x12220000_4_Recovery.ipsw), try: mkdir “~/Library/iTunes/Device Support”. If that directory already exists, remove any files in it. Then re-run PwnageTool.
If DFU restores are giving you trouble, another route to pwned 2.0 for V1 owners is to use first pwnage at 1.1.4. Once you are pwned there, you can do a normal Recovery-mode restore to your custom 2.0 IPSW.
iPhone does
not need to be pre-pwned to be able to DFU-restore into a pwned IPSW - it needs to be pre-pwned only for normal recovery-mode Restores of custom IPSW’s.
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The following posts is a guide on unlocking 2.0 iPhones on Windows. Credit to MacRumors.