You will firts need to upgrade to 1.1.4 (you can find it @
Alles fürs Jailbreaken - Downloads | BenM.at) and use itunes to restore it. Put your phone in recovery mode and press Shift+restore and find the 1.1.4 restore file. Let itunes do its thing. Once its done, you will have a fresh 1.1.4 iphone. Use Ziphone to unlock and jailbreak it. Once this is done, you will need to go to
blog.iphone-dev.org and download pwnage tool 2.0.1 along with the proper bin files (look on the forums. You need both the 3.9 and 4.6 bin files). Choose your unit in pwnage tool, locate your bin files, and build your new custom firmware. You will need the 2.0 restore file which you can find in the link I provided. Then, let pwnage build its thing (you will find the windows version of pwnage on the blog.iphone-dev.org website). Then it will prompt you to plug in your iphone and it will show you how to put it in DFU mode. Follow the steps and once again, you will need itunes to restore the new custom firmware (2.0). Click SHIFT+restore and pick your file and let it do its thing. Once the firmware is installed, don't touch your iphone because bootneuter will need to flash your bootloader version from 3.9 to 4.6. This will take another 2-3 minutes after the iphone has restarted. Don't touch anything while this is happening including setting up your phone in itunes (it will prompt you to set it up as a new phone or restore from back up) Once the flashing is done, your phone will reboot and you will now have a jailbroken, activated and unlocked 2.0 iphone.
Know that there is a 2.0.1 firmware available now. Pwnage tool is now available to work with this version as of this morning but its for mac only. If you have a friend that has a mac, he can build the ipsw file and transfer it to you and you can unlock the 2.0 to 2.0.1 now.