The iPhone Dev Team is still hard at work unlocking the iPhone 3G for us, a signifigant milestone has now been reached with the ability to run a custom baseband.

Here’s a screenshot of a 3G iPhone whose baseband has been modified. And even though it’s modified — and fails the integrity check — it’s still running…
…Running modified baseband code is a very useful ability, but it’s still not possible to accurately estimate how close we are to the ultimate goal.

A short clip has been uploaded and can be seen here…