From the DevTeam....
Apple have recently released the long awaited 2.2 update. We can confirm that this update SHOULD NOT be applied using iTunes if you want the chance of a soft-unlock in the near future.

If you want to keep that option of a ‘soft-unlock in the near future’ available but you want the new features of 2.2, you will be able to update to 2.2 using a PwnageTool created custom ipsw file that disables the baseband update. You will be able to do this using an updated version of PwnageTool that will be released sometime soon.

Some facts -
  • The 2.2 firmware for 3G contains a baseband update for the 3G iPhone
  • The 2.2 firmware for 2G (1st gen iPhones) doesn’t contain a baseband update and the baseband is still at 04.05.04
  • We believe that our Pwnage technique (and therefore the Jailbreak) isn’t affected, but PwnageTool and QuickPwn do not support this release as yet, so DO NOT install 2.2 using iTunes as you will lose your jailbreak
  • If you apply this update and you previously relied on PwnageTool or QuickPwn to activate your phone, it may become temporarily deactivated and unusable (until we release the new version of PwnageTool or QuickPwn).
  • PwnageTool and QuickPwn updates will be released as soon as possible that will allow a safe update path to 2.2 the release of these updates is inevitable but not imminent, we are creating the modifications right now and we need to put the new software through the usual testing process.
  • If you apply this update and you have third-party (non AppStore) applications that you rely on they will stop working.
  • 2G (1st gen) iPhone users who cannot wait for the new PwnageTool or QuickPwn can safely “Update” to 2.2 using iTunes, this will preserve the existing activation. However “restoring” to 2.2 using iTunes will return the iPhone to the unactivated state. If you are in any doubt just wait. NB: This works for 2G ONLY.
  • The use of SIM-Proxies (small circuit boards/chips that sit underneath the SIM card) to provide GSM/UMTS service on your locked iPhone 3G is a method that we have always advised against. Early reports suggest that the 2.2 update disables the functionality of these devices. The techniques used were always unreliable and we are surprised that they have lasted this long.
  • We are not working on the 2nd generation iPod touch at the moment, so we cannot comment on what the the 2.2 software update may do to this specific model
  • So, as always, if you are in any doubt whatsoever please delay the install of this firmware on any of your devices until we have investigated the release in more detail. Watch this space ;-)
    NB: A quick message to a certain O2 UK employee with a stick inserted firmly up his arse, we are not going anywhere
You have been warned