For all of you who have been holding off on paying iPhone SIM Free $60-$100, good news. The iPhone Dev Team has announced AnySIM 1.1. According to the announcement by netkas, the software has been tested with both 1.0.2 and 1.1.1. AnySIM offers a free unlocking solution for iPhone users and apparently, if I'm reading this correctly, does NOT fix baseband problems from earlier releases. This is meant for "virgin" locked phones only. Download your copy here. Be aware that as AnySIM works, it switches off your WiFi until you reboot. Also, this is NOT intended for phones that will be updated. Do not unlock 1.0.2 and then update to 1.1.1. Updating a locked 1.0.2 to 1.1.1 will relock your iPhone. The team is testing a 1.1.1 restore on 1.1.1 unlocks right now. Remember guys: although the software here has been tested to make sure it avoids corruption--it does not hurt NVRAM/seczone--it is very new and has not had a lot of field testing yet. Caveat hackteur.
The team is now working on finishing the iPhone revirginizer that will safely revert your iPhone to its shipped (locked) state. You like? Buy the guys a beer or something. Nazdrovyeh!
Update: The team says if you get a "failed to unlock" on 1.0.2, you're still probably unlocked. Reboot and give it a try.
Update 2: Mirror here.
Update 3: Instructions have shown up here.