MuscleNerd the well-known Dev-Team member, just sent on his twitter a confirmation about the cabability of the newly released redsn0w 0.9.6b1 to jailbreak iOS 4.2 on iPhone 3G and iPod touch 2G. Redsn0w 0.9.6b1 is officially jailbreak iOS 4.1 / 4.0 on iPhone 3G and iPod touch 2G.

Few minute ago we reported you about the new released version of redsn0w v0.9.6b1, which allows you to jailbreak your iPhone 3G and iPod touch 2G running iOS 4.1, here is we already prepared the how-to-guide to jailbreak your iPhone 3G and iPod touch 2G devices on iOS 4.1

Steps:
Step 1: Download iOS 4.1 for your version of iPhone 3G / iPod Touch 2G (download links at the end).
Step 2: Update to this latest firmware using the IPSW file you just downloaded via iTunes 10.
Step 3:  Launch Redsn0w 0.9.6b1 (download links at the end) and Browse for iOS 4.1 Firmware. 

After releasing the new iOS 4.1, we showed you yesterday how to jailbreak your iPhone 3GS running iOS 4.1 using PwnageTool method, today I will show you how to unlock your iPhone 3GS on iOS 4.1 with  ultrasn0w to use it with any carrier.

Step 1: You should have a jailbroken iPhone 3GS on iOS 4.1, you can follow the step by step guide to Jailbreak iPhone 3GS on iOS 4.1 posted here.
Step 2: After Jailbreaking, Navigate to Cydia Source by Going to Cydia --> Manage --> Sources.