Apple has recently provided a minor update iPhone 3.1.3 to fix some security bugs. George Hotz (GeoHot) has been releasing jailbreaking and unlocking tools for iPhone.
Although redsn0w 0.9.4 tool is available to jailbreak iPhones, people are waiting for blackra1n to successfully jailbreak and unlock their devices. The latest redsn0w tool works only on iPhone 2G and old version of iPod touch.