It looks like those with less than sparkly credit might be able to use the iPhone 3G with AT&T’s Pay-As-You-Go plans. One Erica Sadun of TUAW tried putting a PAYG SIM card into an iPhone 3G (complete with data package) and apparently it worked fine. The iPhone wasn’t pWn3d or unlocked or anything… but the iPhone 3G was activated with AT&T. Once word of this really gets out, we wonder how long it will take before Apple or AT&T fixes the “problem.” The big issue is getting your hands on an iPhone 3G in the box without contract or having to activate it in-store. We guess that those crafty, clever, and cunning enough will find a way. Has anyone else attempted to use an iPhone 3G with a PAYG SIM?

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It took four whole days after the release of the iPhone 3G for Apple’s new handset to get the dev team’s jailbreak treatment. Will these guys ever stop impressing us? Their latest feat isn’t available to the public just yet but the above video shows a dev team member connection via SSH to an iPhone 3G. The dev team is currently working out some details but upon release – here comes the really good part – the new jailbreak will allow iPhone and iPhone 3G users to run Apple-approved apps AND jailbreak apps side by side with no problem! That’s right people; App Store, Installer and Cydia living side by side with no problem. The dev team believes that users should have the choice between Apple-governed apps and open apps, and we couldn’t agree more. Also, the App Store isn’t available in every country so this will give all iPhone owners access to great iPhone apps. The new pwnage tools will also supply a solution for the now-required signing process so that any and all iPhone apps will install just fine. As to exactly when we can expect a public release, we’ve just been told “soon”. Hey, that’s fine with us. Take your time dev team, you know we love you…