MuscleNerd of iphone-dev has been updating us via his twitter account with some info about firmware 2.2.1 which was released yesterday.

• 2.2.1 does not break the dev team's methods of jailbreak.
• 2.2.1 breaks the 3g software unlock
• 2.2.1 does not break iPhone 2G unlock since the 2G baseband is not updated.
  (it hasn't been updated for 8 months)
  Don't Upgrade yet though . . .

For anyone that wants/needs to unlock the iPhone 3g do not update to 2.2.1 until the dev team releases a method (i.e. PwnageTool) for a 2.2.1 jailbreak/upgrade. If you upgrade to 2.2.1 your baseband will be upgraded and it is unclear if/when you will be able to unlock.

Also, check out MuscleNerd's video "2.2.1 and you"
[ame]http://www.veoh.com/videos/v17366414ttG9fGaw[/ame]