also, i plan to use it on my vodafone network but, it's currenty still locked to o2, clearly that is a prob so i want to jailbreak it to allow it to work on other networks/sims, i've done a brief search on the net and found all kinds of promises and prices, i'm just confused now!
Jailbreaking is allowing third party software to run. Unlocking would be allowing other network SIMs to be used. Generally you jailbreak first and then unlock since you need to get the unlocking tools onto the iPhone.
The tools are actually free but many unscrupulous companies and people out there repackage the tools or just send you a link and charge you a fortune for it.
To unlock a 3GS without paying O2 it depends on the versions of the software installed. Some versions are easy to do. Some aren't.
If you can, I'd just get it unlocked by O2. You'll probably have to pay a fee but the unlock will be permanent and you won't have to worry about hacking the firmware everytime there is an upgrade.
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