iphone cracking

The new iPhone 3G comes pre-installed with the latest version 2.0 of the iPhone firmware, allowing support for a larger range of applications and enhanced functionality, Now first generation iPhone users can also enjoy the benefits offered by the latest iPhone 2.0 software update as Apple released the new firmware update for the original first generation iPhone and iPod Touch users.

The most notable new feature in the latest version of the OS is its ability to access Apple App Store to directly download and install more then 500 native applications and games, other notable features and improvements include support for Microsoft Exchange ActiveSync, GPS tracking, Geotagging, parental controls, real-time mapping, MobileMe support, new scientific calculator, power-point file format support, support for additional languages and introduction of new features in Mail, Contacts, and other applications.
iPhone Applications

To upgrade your iPhone or iPod Touch to OS version 2.0 firmware, you need to download and install iTunes 7.7 or later from Apple, Then simply connect the iPhone or iPod Touch to the computer and update your device using iTunes as described here - > (Must read before upgrade).

You can also upgrade your device using the standalone upgrade here [iPhone Only, 225 Mb, Direct Download Link].

UPDATE:
How to install .IPSW file:

1. Once the iPhone standalone update file is downloaded, save it to your Desktop.
2. Launch iTunes 7.7
3. Shift-Click on "Check for Updates".
4. Navigate to your downloaded .ipsw file on Desktop.
5. Once selected, the iPhone update works like it were automated and will extract itself.

WARNING: Only use this method if you are well aware of the risks involved in doing this, there is no responsibility of any kind and this could seriously make your device useless.