Jailbreak 3.1.2
This jailbreak works for all iPhones (2g, 3g, 3gs), and all generation of the iPod. Its really easy too! Thanks to geohot, “blackra1n” is now released.
Note: You can unlock the new baseband by adding the repo: http://blackra1n.com
Downloads:
Instructions:
1. First update to firmware 3.1.2 in iTunes.

2. Download blackra1n for your operating system, from the links above (windows or mac).
3. Once downloaded, double click on the downloaded file to run and you should see the following screen.

4. Plug in your iPhone/iPod to your computer, then click the “make it ra1n” button. It will load for a bit and reboot your phone. After its done rebooting see if you have a “rain drop” icon, if you do that means your device is successfully jailbroken. *If it did not work, don’t worry just repeat the steps again* The rain drop icon will look like the one in the image below.

5. Click on the “blackra1n” icon.
6. Install Cydia. *You can install Rock and Icy if you like*
*You will see the following screen*

7. And you are down, you device is officially jailbroken.
Congrats, and enjoy!
~ ice
sources:
http://blackra1n.com
http://redmondpie.com
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