Apple has released iPhone OS 3.1 which includes a number of new features; however, its important to remember NOT to update your firmware. If you update now you will likely lose your unlock and maybe even your jailbreak (iPhone 3GS). We will provide instructions once a safe upgrade path is available.

REMEMBER do not use the normal iTunes update process to update your iPhone and do not update to 3.1 OS at this time if you want to keep your iPhone Unlocked…

You must say “NO” to your iTunes update. You can still have your iPhone 2G, 3G and 3GS Jailbroken and Unlocked if you have not updated to the latest 3.1 OS… If you want to keep your iPhone UNLOCKED to be used on other carriers, I would suggest staying away from 3.1 OS for a while. 3GS Owners/Users Unlock your iPhones while you’re running 3.0 or 3.0.1 OS and keep this OS as long as you can… The new 3.1 OS updates the baseband permanently, meaning you will not be able to ever unlock it again…

The new iPhone 3.1 firmware adds the following new features…

Genius Recommendations for Apps
Get recommendations for apps you might like based on apps you’ve already downloaded.

Genius Mixes
Have iTunes create up to 12 playlists based on what’s already in your library. You don’t even have to choose a sample song.

Download Ringtones Wirelessly
Choose from thousands of iPhone ringtones on the iTunes Store and buy them with a tap.

Organize Apps in iTunes
Use iTunes on your computer to drag apps onto virtual Home screens, then sync them to your iPhone.

AppleInsider has also posted a list of the fixes in 3.1:

• * Improved syncing for music, movies, TV shows, podcasts, and photos
• * iTunes U content organization
• * Redeem iTunes Gift Cards, codes, and certificates in the App Store
• * Display available iTunes account credits in the App Store and iTunes Store
• * Save video from Mail and MMS into Camera Roll
• * Option to “Save as new clip” when trimming a video on iPhone 3GS
• * Better iPhone 3G Wi-Fi performance when Bluetooth is turned on
• * Remotely lock iPhone with a passcode via MobileMe
• * Use Voice Control on iPhone 3GS with Bluetooth headsets
• * Paste phone numbers into the keypad
• * Option to use Home button to turn on accessibility features on iPhone 3GS
• * Warn when visiting fraudulent websites in Safari (anti-phishing)
• * Improved Exchange calendar syncing and invitation handling
• * Fixes issue that cause some app icons to display incorrectly

The iPhone 3.1 update is available for free and the iPod 3.1.1 update is available for $4.95 to those who already purchased 3.0.