The iphone then turned up in the usual gorgeous Apple packaging. After following these instructions (as it was a 1.0.2 firmware) it was activated and jailbreaked like a charm with some neato apps on it (and openssh etc). I love 'Sketch' BTW! :). Colloquy is pretty good for IRC too
Then these instructions were followed to unlock the SIM...
From your phone, open Safari and visit the following website: http://i.unlock.no - a dialog will appear and ask if you want to add a new package source. Tap on Yes. The Installer application will now automaticly launch, and it will refresh the list (if it doesn't refresh, tap the refresh button).Finally these instructions were used to change the SIM card and hey presto - a totally working iphone in the UK with a normal SIM card.
In the list of applications, scroll down almost to the bottom. Under the category "Utilities" you should now have "anySIM" there. Tap on it and install it (hit yes on the warning dialog). When done, press the home key, and wait for the phone to refresh. Now you should see an anySIM icon on your phone.
Before you start anySIM, go to Settings ? General ? Autolock and set it to Never. Now you can press home button, and tap on the anySIM icon.
Slide to unlock, and read to the bottom and tap the red button. This process will take some time, so just sit back and relax. When it's done, you get a message telling the result. If it's an error make note of that error, but don't worry yet.
Insert a SIM from a carrier of your choice.
If you get signal, your phone is unlocked and you are done!
See iphone.unlock.no for additional reference notes.
My friend is really really happy with his iphone - and is especially glad he accidentally broke his previous phone by dropping it which meant he just had to get an iphone to replace it :). Other tips from this friend of mine is to surf your gmail use