We just happened to be in Sao Paulo, Brazil, this week and when the news popped up that a group of Brazilians had unlocked the iPhone 3G, we just had to pop in to say hi. Like the Turbo SIM unlock for the original iPhone, this system uses a wafer-thin card that piggybacks on your SIM while in the phone. Of course, Turbo SIM needed some tools installed on the iPhone -- so Jailbreak was key -- this solution does not, just DesbloqueioBr's chip and your SIM. Paulo and Breno of DesbloqueioBr explained that the magic lies in the programming of the SIM adapter itself, by tricking the iPhone into believing a test SIM has been inserted, the iPhone allows service and then functionality is handed back to your SIM. We tested the unlock in our own FIDO locked handset with a local TIM SIM card, then in their AT&T set, and it worked perfectly in both. How much will this cost average Joe iPhone user? They were pretty tight lipped as to what the final pricing will be and how exactly they'll deliver the service, but we should hear more in the next few days. Check the vid of it all in action after the break.