After several failed attempts at craigslist and unwillingness to sign a 2 year contract my wait finally got over today. I bought a 4 GB 1st generation iPhone.
I attempted to jailbreak and unlock with QuickPWN but it did not quite go well on mac. I guess because I failed to put iPhone in DFU mode a couple of times. When I tried again iTunes blew raspberry with "An iPod has been detected, but it could not be identified properly. Please disconnect and reconnect the iPod, then try again. 2001"
The phone didn't turn on again. I guess this is what they call being brick. I restored my iPhone by holding down home key and connecting to pc with iTunes (8.0) already running. I let iTunes update the software version to 2.2.1 and restore it to factory setting. This took about 25 mins.
So the phone was alive again! Then back to unlocking and jailbreaking.
1. Download and unzip QuickPWN - Software Version: 2.2.5-2 from www.quickpwn.com.
2. Download bootloader file from http://www.mediafire.com/?990ml2wzcuz and unzipped to get bootloader 3.9 and bootloader 4.6.
3. Download iPhone1,1_2.2.1_5H11_Restore from www.quickpwn.com.
All the above downloads should be in the same folder. Close iTunes while your iPhone is still connected to pc. My iPhone had the unactivated AT&T sim card while I unlocked it.
With all the downloads ready and phone connected run QuickPWN. It would guide you thru all the steps. Most important step is while putting the phone in DFU mode. Do not release the home key until iPhone screen turns white. That is when QuickPWN has started to run your iPhone.
After that its a cake walk. But yes replacing the sim is a little unconventional too!
Here's my apple and iPhone :)