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The cat and mouse game continues between Apple and the Dev Team, a group of guys who are passionate about freeing Apple handheld devices from the company's short leash. The Dev Team has been jailbreaking new Apple firmware for years, and it just did so again--though this time around it seems Apple is still taking the decisive lead.

The team announced Friday the availability of PwnageTool 3.13, which allows for jailbreaking and unlocking the iPhone 3GS running the latest firmware, version 3.1. Currently only a Mac version of the tool is available, but the Windows version will be out soon. (Keep in mind, however, that you download and use the PwnageTool at your own risk.)

A jailbroken iPhone can do a lot more than what Apple wants it to do.

(Credit: Screenshot by Dong Ngo/CNET)

The tool creates a custom firmware from the version 3.1 firmware released by Apple. To install it, you put the phone into recovery mode (turn it off, then plug it in while holding down the Home button) and use iTunes to restore the phone with the custom firmware (hold down the Option key while clicking on the Restore button).

The custom firmware, apart from jailbreaking, will not upgrade the baseband--the chip that connects the phone to a service provider--and therefore still allows the phone to be unlocked.

But there's a catch here. The tool only works with the iPhone 3GS that has been jailbroken with the firmware version 3.0 or 3.0.1. This means if you buy a new iPhone 3GS that already has version 3.1 on it or you have updated to version 3.1 using iTunes, there's still no way to have your phone jailbroken. There's even a rumor that there might never be one, unless a new exploit is found.

If this is true, it seems Apple has finally been able to gain significant ground in stopping the practice it claims could pose a threat to national security. And for thousands, if not millions of iPhone 3GS users who rely on jailbreaking and unlocking to use their phones with the service of their choice, this is sad news.

Navigon shows an image to help you pick the right freeway, which is helpful but can be annoying, as the image takes up the whole screen for a few seconds.

(Credit: Dong Ngo/CNET)

I'm a big fan of GPS navigation devices. Actually, I depend on them. It's therefore natural that on my iPhone 3GS you'll find both the newest turn-by-turn GPS navigation applications, the $70 Navigon and the $80 iGo My Way. Both have just recently been released to the App Store. (In my car I also have the Tom Tom One XL.)

After about a week of using the iPhone apps in the San Francisco Bay Area, as well as in a few other states, here are my impressions.

First of all, both Navigon and the iGo can turn your iPhone (3G or 3GS) into a decently dependable GPS navigator. They both take about 15 seconds to load on my iPhone 3GS and about the same time to lock in with a GPS signal when outdoors. This is much faster than the Tom Tom, which can take up to a minute or two. Overall, the iGo My Way seems to pick up the signal faster than the Navigon, but it also loses the signal more easily, especially when in a big city with lots of high-rise buildings.

My biggest disappointment with both is that they don't offer real-time traffic updates, which you can get anywhere in the States with Google Maps.

Both apps offer beautifully rendered 3G maps that can be viewed vertically or horizontally, and a very convenient way to enter a new address or find a point of interest (POI). They come with good databases of POIs, too. I was in a few rather remote areas and was able to find what I needed. However, the database is not very updated--twice, both apps took me to restaurants and bars in La Cross, Wis., that were no longer there. Unfortunately, you can't tab on the listed POI to call its phone number, which defeats the main purpose of the iPhone, which is, after all, a phone.

The iPhone 3GS during a talk time test. The "Watchmen" DVD is merely there to simulate a user holding the phone to their ear, thereby shutting off the screen. Music from the Zune is being played through both phone mics.

(Credit: Eric Franklin/CNET)

Last year I had a bone to pick with Apple for not including a call duration feature on the iPhone. Not a big deal to most people I'm sure; however, when it comes to testing talk time here in CNET Labs, I can't think of a more useful feature.

With last year's iPhone 3G, I was able to circumvent this inconvenience by tracking the phone's "Time since last full charge" duration. This number, as you might have guessed, tells you the amount of time that's passed since the phone was last fully charged. So, all I had to do was charge the phone fully, start the test, wait until the battery died, plug it back in, and check that number.

This worked fine last year, but with the current round of iPhone 3G and 3GS testing, I'm getting extremely varied results--so varied, in fact, that I can no longer trust this method.

No matter, though, since the latest iPhone OS 3.0 added a call duration feature. I figured I'd just set up the talk time test--which involves taping earbuds from a MP3 player to the mic of the iPhone and a landline phone, calling the landline phone, and waiting for the battery to die. Then I'd come back several hours later and have delicious results waiting for me (kind of like an iPhone-testing-results Crock-Pot).

Once again, I'm slapped back to reality as, unfortunately, the couple of times I've tried using the call duration feature on the 3G and 3GS I've had little luck. Apparently, if the phone's battery dies in the middle of a call, the duration of that call isn't saved on the phone.--yet another roadblock.

If you're lucky, you might be able to pocket as much as $200 in profit on your old iPhone.

If you're among those lucky few who are eligible to upgrade to an iPhone 3G S without paying full retail pricing, here's good news: you can sell your old iPhone 3G and walk away with some extra cash.

Let's say you have the 16GB model. A quick check of Craigslist and eBay shows that the going rate for a mint-condition 16GB iPhone 3G is around $400.

Now, it doesn't take a math whiz to figure out that if you buy a 16GB iPhone 3G S for $200, you'll walk away with a $200 profit. Grab the 32GB model and you make $100. Not too shabby, eh?

Of course, with the sudden glut of used iPhones out there, you may have a tough time finding a buyer. If you'd rather not deal with the hassles (and potential wait) of selling to another individual, consider selling to a service.

iPod fix-it shop Rapid Repair, for instance, has an iPhone buyback program that's currently offering $230 for an 8GB iPhone 3G and $270 for the 16GB model. It'll even pick up the cost of shipping.

I also got an online quote from used-gadget buyer NextWorth, which offered about $220 for my 16GB 3G.

Used-gadget buyer NextWorth will give you a decent price for your used iPhone 3G.

Sadly, I'm not eligible for upgrade pricing until 2047, or something ridiculous like that. (Thanks, Apple!) So I haven't been able to put any of these methods to the test. If you have, be sure to leave a comment detailing your experiences.

If you do decide to sell your old iPhone, here's some advice from resident forensics expert Jonathan Zdziarski: 1) Pull the SIM card. The new owner won't be able to use it anyway. 2) Erase the phone by tapping your way into Settings > General > Reset > Erase All Content and Settings. Make sure to keep the phone plugged in, as this process can take a couple hours to complete.

One of the most attractive aspects of the new iPhone 3G S is the pricing; $299 for the 32GB model and $199 for the 16GB model isn't bad. Even better is the $99 for the old iPhone 3G with 8GB. But beware; not everyone qualifies for the announced pricing right off the bat.

The truth is, these prices only apply to new customers, new lines of service, and contract renewals. If you're still under contract, including existing iPhone 3G owners, you're probably not eligible for the upgrade. AT&T claims that most iPhone 3G owners will be eligible for the announced pricing only after 18 months. However, you might still qualify for an "early upgrade price", which are $499 for the 32GB, $399 for the 16GB, and $299 for the old 8GB iPhone 3G--that's only if you can't wait the six or so months to get the new phone. If you don't want the two-year contracts at all, you'll have to cough out the full price of the phones, which are $699 for the 32GB, $599 for the 16GB, and $499 for the 8GB.

I bought my iPhone 3G in August of last year, and so I tried to see what price I would get when I tried to buy the latest iPhone 3G S. This is the screenshot of my online order:

The "early upgrade" price for existing customers

(Credit: Nicole Lee/CNET)

Notice that it says that my eligibility date is 04/15/2010, which is about a couple more than the 18 months stated. I've heard plenty of coworkers say their eligibility date is early December of this year, while others said their eligibility date is February of next year. It seems like there's some inconsistency as to when existing customers can truly qualify for the announced pricing. On top of that, it looks like it costs another $18 to upgrade at all.

Of course I understand that AT&T doesn't need to cater to its existing customers; we've already signed our souls away to them. This happens with almost all cell phone carriers, not just AT&T, and this is nothing new. But that doesn't change that it's just a little frustrating to know there are these little hidden annoyances that happen to us existing customers just because we gave them our business before everyone else.

(Additional information via Gizmodo)

The iPhone 3G S has a number of updates over the iPhone 3G.

(Credit: Apple)

As expected, Apple announced a third version of the iPhone, dubbed the iPhone 3G S (the S stands for speed) today at the keynote for WWDC 2009. This new version has several updates over the iPhone 3G model, and here they are:

• As the name implies, the new iPhone 3G S is supposed to be faster. Apple boasts that you can load Web pages and launch apps twice as fast as the previous model. It also promises improved 3D graphics for games.
• A 3-megapixel camera with autofocus. You can also focus by tapping on the screen. It will also have settings for white balance, exposure, low-light sensitivity, and a macro mode for close-up photos.
• A camcorder. You can shoot VGA-quality video in 30 frames per second, and after you're done, you can trim the video by adjusting the start and end points. You can then send the video via MMS (included in iPhone OS 3.0) to a friend, to your MobileMe account, or even to YouTube, directly from the phone.
• Voice control, but not just for calls. Not only can you manage phone calls with your voice, you can use your voice to play music. You can ask the phone what song is playing, ask it to play a particular song from an artist or an album, and even to play songs that are similar to the currently playing track.
• A built-in digital compass. It automatically reorients the map to the direction you're facing. It works in conjunction with Maps to give you street view as well.
• Voiceover, an accessibility setting on the new iPhone 3G S that acts as a gesture-based screen reader.
• Compatibility with Nike+ iPod, where it detects the Nike+ sensor in your shoe to track your runs.
• Improved battery life. Apple promises that the iPhone 3G S can hold up to 9 hours in Wi-Fi, 10 hours on video playback, 30 hours on audio playback, 12 hours talk time on 2G networks, and 5 hours talk time on 3G networks.
• The 16GB model will be $199 with a new contract and the 32GB model will be $299 with a new contract. They will be available June 19, 2009.

Of course, this is in addition to the iPhone 3.0 features that were promised earlier this year, which include copy and paste, voice recording, Internet tethering, and stereo Bluetooth. Older iPhones will be able to get the iPhone 3.0 update for free. The iPhone OS 3.0 update will be available June 17, 2009.

Well, here's hoping you waited on that $99 refurbished iPhone 3G, because as of Monday you can get a new one for the same price. Apple just announced at WWDC 2009 that the 8GB iPhone 3G will stay on the market for $99.

Forget refurbs--now you can get a new iPhone 3G for just $99.

(Credit: James Martin/CNET)

So what do you think? Now that you can finally get a shiny new iPhone with a full warranty (one year) for less than a hundred bucks, will you pull the trigger?

Based on the comments in last week's aforementioned refurb post, I'm guessing no. For most of you, it's not the price of the hardware that's objectionable, but rather the service.

AT&T still charges a minimum of $70 per month for minutes and data. In these craptacular economic times, that's just too much. Me, I'd love to give the missus my current iPhone and snag myself a 3G S, but then I'd be looking at nearly $150 per month. She'd kill me, and I'd probably let her.

Thoughts? Is the iPhone 3G (and/or 3G S) just that good that you'll pay whatever extortion Apple and AT&T want? I'll admit I'd be lost without mine; I use it all day every day, for countless purposes. Damnit.

Update: AT&T dropped the price of refurbished 8GB iPhones to $79.99. My advice: steer clear. It's well worth the extra $20 to get a full one-year warranty. But the 16GB model is down to $129.99 (though currently out of stock). That's pretty tempting.

Why mess with a good thing?

(Credit: Corinne Schulze/CNET Networks)

Apple fans were disappointed last month when the annual Macworld Expo failed to produce a new version of the iPhone. Indeed, Apple's last Macworld appearance was a snoozer in many ways. New products of any type were slim and CEO Steve Jobs did not give his usual "one more thing" keynote.

In the weeks leading up to the show, rumors regarding a new iPhone were widespread. Most buzz predicted a cheaper, smaller version of the device--an "iPhone Nano" if you will--while others forecast a 32GB iPhone or a pink model. Though all of these rumored devices failed to materialize, the iPhone Nano gossip is showing no means of dying down. In fact, the most recent dish suggesting that China would get it first.

Tuan Anh Do shows off an unlocked iPhone 3G at one of his cell phone repair shops in Hanoi.

(Credit: Dong Ngo/CBS Interactive)

Editor's note: CNET editor and Crave contributor Dong Ngo is spending the next month in his homeland of Vietnam, and plans to file occasional dispatches chronicling his impressions of how technology has permeated the culture there. Click here for more of Dong's stories from abroad.

HANOI, Vietnam--Every obstacle presents an opportunity. I saw this firsthand in Hanoi.

Tuan Anh's shop on Nguyen Du street.

(Credit: Dong Ngo/CBS Interactive)

The obstacle in question: the iPhone 3G. Since its launch, it has proven a much tougher nut to crack than the original iPhone. Without a viable software-based unlock solution, the only way to make the phone work with any GSM carrier has been the use of a proxy SIM. Put this piece of very thin circuitboard in the iPhone 3G atop the carrier's SIM, and you can make calls and text on a new network.

(I did experience some problems using the proxy SIM, including short battery life, instability, and, most seriously, incompatibility with iTunes.)

Unfortunately, the recently released 2.2 software update, for now, has made the iPhone 3G impossible to unlock--unless you happen to be in Hanoi. Here, I met a man who takes the job quite seriously and gets it done the hard way, literally.

His name is Tuan Anh Do, and he's a 29-year-old businessman who owns five cell phone repair shops. A big part of his business is servicing the iPhone and iPhone 3G, and that often involves getting those devices unlocked at the hardware level.

One of his shops is on Nguyen Du street, a relatively small, quiet block in Hanoi. It's located in a typically narrow four-story house, with one floor serving as a reception area, and another holding the accounting department. The top floor is the workshop, where the magic happens.

Here I witnessed a brand new iPhone 3G getting its hardware unlocked and was really impressed. This is how it happened.