This video shows How to unlock Jailbreak Activate iPhone on Firmware 2.0 and install Cydia. If you want to install installer 4 Beta, you can use winpwn2.0.0.4 and select installer 4.0 and follow the same exact procedure.
First, you’ll have to download all the necessary files first.
Go to,
http://www.freeiphonelook.com/iunlock/2.0/
and download all the necessary files from there.
If you don’t know how to put your phone in DFU mode, this is a great video to learn from
http://www.youtube.com/watch?v=fiTcKMZfyfk
if you get error message when you start winpwn saying “The application failed to initialize properly(0xc0000135).” You’ll need new .NET framework go to this website and install it. You should be able to run winpwn after that.
http://www.microsoft.com/downloads/details.aspx?familyid=0856eacb-4362-4b0d-8edd-aab15c5e04f5&displaylang=en
Duration : 0:4:11

Easy Howto
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Why wont they do video.
Free Custom Apple iPhone 3G Skin