The 0.9 beta release of "yellowsn0w" does still have some noted issues, but a big feature worth noting is that the unlock will work with the latest modem firmware (02.28.00). In other words, if you have an updated iPhone 3G at version 2.2, it is possible to unlock your iPhone without having to exploit holes only found in previous versions of the firmware. Even though this release is dubbed a "beta" reports are pouring in at the Dev-Team blog of success stories.
For more details, issues and experiences (positive or negative) head on over to the Dev-Team blog. While this intrepid blogger will be passing on the unlock, if you have any luck trying this out, let us know in the comments.
Thanks to everyone who sent this in!