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Good news for all iPhone users out there is that GeoHotz is all set and ready to release the new Blacksn0w Unlock Tool to the masses.

All the testing has been done and according to him, it will work with any iPhone on the Firmware 3.1.2, even those with the 05.11.07 baseband.

He will be releasing the tool in a couple of hours which will then be available through the Blackra1n.app. Below are some of the instructions posted by GeoHotz on his blog for users who want to use Blacksn0w to unlock the iPhone. Only those with a iPhone 3G or a 3GS should attempt.

1. Update the iPhone to Firmware 3.1.2 using iTunes.
2. Download Blackra1n RC3 through this link.
3. Run the app and click make it ra1n.
4. After the iPhone reboot, run the blackra1n.app, tap on Sn0w and install blacksn0w.

For those who already have the blackra1n.app:

You will see Icy replaced by an option "ra1n". Install this to upgrade your app. After upgrading, run blackra1n.app again. You will see "sn0w". Install this, and enjoy your unlocked iPhone.

Note: GeoHotz plans to release the new Blackra1n RC3 at Noon EST. Blacksn0w will also be available at Cydia shortly after it's official release.

New: iPhone 3G and 3GS users on baseband 05.11.07 can now unlock their iPhone using Blacksnow!