How to: Jailbreak iPhone 3G and iPod Touch 2G on iOS 4.0.1 [Windows/Mac]

MuscleNerd Confirmed that You can Jailbreak iPhone 3G and iPod Touch 2G on iOS 4.0.1 Using Redsn0w 0.9.5b5-5 and the Guide is Easy, No need to be nervous.. Also After Jailbreaking You will be able to unlock Using Ultrasn0w 0.93...

Here's the update from Dev Team blog:

You can use this redsn0w to jailbreak 4.0.1 on iPhone3G. Just point it at the 4.0 IPSW (the public one, not the developer GM one).
(Yes – point it at the 4.0 IPSW even though you're at 4.0.1).
There's a mobilesubstrate issue that will prevent ultrasn0w from working correctly at 4.0.1. That'll be fixed soon.

Steps:
Step 1: Download iOS 4.0.1 for your version of iPhone / iPod Touch links Here.
Step 2: Update to this latest firmware using the IPSW file you just downloaded via iTunes 9.2.
Step 3:  Launch Redsn0w 0.9.5b5-5 (Links at the end) and Browse for iOS 4 Firmware not iOS 4.0.1 file.
Step 4: Select "Install Cydia" and click on Next

Step 5: Now make sure your device is both OFF and PLUGGED IN to the computer before you click “Next”.
Step 6: Connect your device in recovery mode by pressing the Power and buttons continuously.

At this stage you will be presented with a screen where you will have to quickly hold “Power” button and then while holding the “Power” button, you will now have to hold “Home” button too. Now after few seconds release “Power” button but keep holding “Home” button until installation begins.
Step 7: You will Get a Jailbroken Device as soon as the process ends, Now let's move to the Unlock process posted here.
Download Redsn0w 0.9.5b5-5:

• Mac OSX x86
• Windows