A word of caution for those of you who currently have Apple's latest software update running on your iPhone 3G: the updates used in firmware 2.0.1 may render your Apple gadget insusceptible to normal jailbreaking methods. It may soon become a toss-up between having a more stable device or being able to freely download third-party apps on it.

Apparently, firmware 2.0.1 updates the iPhone 3G baseband, locking out your previously jailbroken settings on any previously loaded firmware. No worries, though. The iphone-dev team are currently on the case and is trying their best to deliver all the benefits of firmware 2.0.1 without the pesky new baseband limitation. This will obviously be the top priority in the next release of the PwnageTool application.

On the other hand, developer BigBoss has posted a way to downgrade any iPhone 3G unit which has already been updated with the new firmware. If you feel the need to use your old jailbroken settings, here's a quote taken from the Sleepers website explaining how to downgrade your device:

Just to confirm! you can downgrade back to 2.0! i upgraded from 2.0 jailbroken with winpwn to 2.0.1 (i noticed a difference in the text lag wasn't as bad). but i wasn't happy enough to loose my jailbreak so i downgraded all i did was is loaded winpwn then loaded the 2.0 firmware (i still had 2.01 on my iPhone 3G) and did all the steps and it worked no problem at all! ill wait to upgrade till the new firmware can be jailbroken!

Please note that this may affect xSim type card operations, so it might be better not to upgrade your iPhone at all until a proper jailbreak is devised for it. In any case, we'll be sure to keep an eye out for any updates regarding this as soon as we get them.

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Related articles:

• Pwn your iPhone: PwnageTool 2.0.1 now out
• iPhone 2.0.1 firmware for iPhone and iPod touch now out