This has been only tried on MAC OSX Leopard 10.5.2 and iTunes 7.6.1 there are chances on bricking iPhone but it is on ur own risk below are the steps i used to unlock my Iphone.
Download:
1)
http://code.google.com/p/independence/
Independence version 1.4 beta 5
2)Ziphone for MAC OSX from ziphone.org
3)1.1.4 Firmware from iTunes
Step One:
Make sure u have bootloader 3.9
Step two: Restore iPhone to version 1.1.4 using iTunes and back up if u want to i recommend u do
Step three: After it is done run independence and click Jailbreak and then Activate there may be a dialog which says downloading firmware files. Thats ok.
Step Four: after that is complete install ssh
Step Five: Now after go to info and check if u have the firmware 4.02.13_G
Step Six: Now run ziphone and click jailbreak to install installer.app
Step Seven: Run installer and add the iclarified source if not already added which is installer.iclarified.com.
Step Eight: Install BSD Subsystem and BSD SUbsystem term fix
Step Nine: Exit installer and go to settings and set auto lock to never
Step Ten: Open installer and open iclarified folder and run the UNLOCK 1.1.4. this will take five MINUTES so let it do its thing after it should come ur iphone is unlocked.
Now u should be having an unlocked iPhone with the latest baseband which is 4.04.05_G
Credits go to iclarified and zibri and everyone else who has been invloved in the unlocking of the iPhone
FOR PROOF OPEN THE ATTACHMENT TO THE SEE THE LATEST VERSION AND FIRMWARE NO. AND ALSO ON THE TOP LEFT THERE IS THE CARRIER NAME WHICH IS ETISALAT WHICH IS USED IN THE MIDDLE EAST