How to Jailbreak iphone 3GS using PWNAGE TOOLS [*not for iphone 3G]

Follow these steps:

Step 1: Create a folder on your desktop and name it "Pwnage"

Step 2: Download RedSnow and put it in the Pwnage folder you just created.

Step 3: Download iPhone OS3.0 firmware and put it in the same Pwnage folder. OS 3.0 Firmware Download

Step 4: Extract the redsn0w executable (.exe) from the zip file into the Pwnage folder.

Step 5: Now connect your iphone to your computer and launch iTunes.

Step 6: Select your iPhone from the list of devices mentioned on the left hand side.
Click and hold down Option and click on the RESTORE BUTTON .

Step 7: Go to the Pwnage folder. Select the firmware and click open to continue
Note: If you're already running on OS 3.0, you may SKIP this Step.

Step 8: After redsnow opens, click on the BROWSE BUTTON and select the firmware from the Pwnage folder and click OPEN

Step 9: It will verify the firmware, after its done CLICK NEXT

Step 10: Select the CHECKBOX to install "CLYDIA" and the other one too and then click NEXT.

Step 11: Now redsn0w will instruct you on how to put your iPhone 3GS into the recovery mode.
Disconnect your iPhone from the computer and power it OFF.
Hold down the Home button while you reconnect your iPhone 3GS to the computer.

Note: Do not let go of the Home button until redsn0w detects your iPhone and begins the installation.

Step 12: Now your phone will reboot

Step 13: After rebooting, redsnow will start uploading the new RAM DISK and the new kernel on your iphone, please be patient

Step 13: It will notify you once the ENTIRE PROCESS IS DONE.

After this your iPhone 3GS should take about 5 minutes to reboot, and once it finishes rebooting it will be jailbroken with Cydia installed on the SpringBoard.

Please let us know if it worked for you

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