Most of the people think that Jailbreaking an iPhone means unlocking (although to unlock an iPhone, first you’d need to jailbreak it). Jailbreaking is a technique by which you can hack that opens up the phone’s firmware, by hacking you can install third-party applications in iPhone.
iPhone offers some restriction which make it lower in comparison to other mobile phones users such that they cannot made video recording, photo zoom, custom ringtones, change the look of your iPhone(most of the features are available in iPhone 3GS without Jailbreakingg). These limitations are surpassed by Jailbreaking the iPhone. User can take advantage of third party application.
If we talk on technical terms then we can say that iPhone runs on a Mac OS X Unix based OS. By Jailbreaking the iPhone platform you can install certain Unix applications such as a lightweight Apache Web server with PHP or SSH daemon to accept remote connections.
For unlocking the iPhone, Jailbreaking is required, Apple decide some official carrier for particular region to Unlocking an iPhone breaks the lock on the SIM card and allows the phone to work with all carriers.
For Jailbreaking the iPhone these are the great resources:
Step-by-Step Guide to Jailbreak iPhone 3GS running iPhone OS 3.0 using Redsn0w (Mac)
Jailbreak iPhone 3.0.1
How to upgrade / unlock your iPhone in 15 minutes (old version)
These are ultimate step by step guide to Jailbreak iPhone 3.0 or old version.
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