To follow this tutorial you will need to have iTunes 7.7 installed (make sure to reboot). Also, you may need to download and install .Net Framework if you are on Windows XP.
Create a folder on your desktop called Pwnage. In it place the following files: WinPwn 2.0.o.2: here or here , 3.9BL , 4.6BL , and the latest 2.0 firmware.
Install WinPwn by extracting the downloaded zip from Step One and running the setup executable. Once WinPwn has been installed it will put a shortcut icon on your desktop. Double click to launch the application.
Once WinPwn has opened click the Browse .ipsw button.
Locate the 2.0 firmware file (iPhone1,1_2.0_5A347_Restore.ipsw) from the Pwnage folder on your desktop and click Open.
WinPwn will check the firmware to make sure its valid. Now click the IPSW Builder button.
The IPSW Builder window will open to the Applications tab. Check to select Cydia and if you are not on AT&T then check to select YouTube Fix.
Click to select the Custom Images tab. From here you can can select
your own boot images.
Click to select the Custom Payload tab. From this tab you can select custom payloads you have created to be automatically installed. We will discuss this in a future tutorial.
Click to select the Advanced tab. Check to select: Activate Phone, Enable Baseband update, and Unlock baseband.
We will also need to load the Bootloader files. Click the Bootloader 3.9 button and then select the BL39.bin file in your Pwnage Folder. Then click the Bootloader 4.6 button and select the BL46.bin file in your Pwnage Folder.
Click the Build .ipsw button at the bottom left to build your custom ipsw firmware file. Navigate to your Pwnage folder and click the Save button.
Once WinPwn has finished creating your custom firmware then click the iPwner button from the main menu.
Select the custom firmware file we just built from the Pwnage folder on your desktop and click the Open button.
You will then be notified that your iTunes has been Pwned!
Next we will need to put the iPhone in the DFU mode and restore using iTunes. To put your iPhone into DFU mode please follow these instructions: Press and hold the Home and Sleep/Wake buttons for 10 seconds. At this point the screen will turn black, and the iPhone will appear to be off. Continue holding the Home button until a recovery mode graphic pops up via iTunes (Step 15-fifteen), then let go of the Home button. You may need to try this more than once if you don't get the recovery mode pop up the first time. It happens, just try again.
iTunes will prompt you that you are in recovery mode.
Hold down Shift and click the Restore button in iTunes.
A popup window will appear asking you to select your firmware. Select the Custom firmware file we saved in the Pwnage folder and then click the Open button.
When it finishes everything you should have a jailbroken and unlocked 1st generation iPhone running 2.0 firmware with the App Store.