While you were busy downloading the World in Conflict demo, Engadget reported that the team at iPhoneSIMfree.com (site is slow now due to digg effect and Engadget) contacted them to release proof of their claim that they have cracked the iPhone SIM lock system.
Most things tested by Engadget seem to be working fine, with the notable exception of Visual voicemail, as it is a AT&T network-specific feature. Other interesting points to note include the quick (only a few minutes needed) and painless procedure and protection against phone restores and future upgrades (untested).
Unfortunately, the unlocking technique is not being released for free. As they state in their site,
Individual per unit licenses will be available starting next week. We are currently opening up our mail for bulk purchase enquiries of 500 licenses and above. Interested parties please Contact Us.
By the way, Engadget has an unlocked iPhone in their possession! Can I have one? :)
[More at Engadget, including an image gallery and videos of unlocked iPhone]
Update: Another company at iphoneunlocking.com has offered a software-only unlock solution costing $25 - $50, with discounts for users who have already signed up. But hang on, George Hotz (part of the original and yet another unlocking team) at his blog has said that they hope to be able to find a software unlock. Seeing that he has released his hardware and software unlock solution for free, this may be your best chance at a free unlocker. At the moment, he has an auction on Ebay for the iPhone that he unlocked in a Youtube video.
[More at Macworld]