At some time you are in need to restore your iphone or ipod or upgrade it to a new version with more functionality built in it. Bear in mind, there are hardware restrictions, so you can not get GPS functionality on your phone by only installing new software on your iphone. However, you can add functionalities like MMS and its like by upgrading the software.

However, sometimes the software gets corrupted for various reasons, and there is a need to restore your operating system, just like in any other computer you are using.

So instead of giving this job to a shop which will charge you around 20 USD for the job, you can easily do it yourself.

You can restore your iPhone with this FREE tool

http://blog.iphone-dev.org/post/126908912/redsn0w-in-june

Download the redsnOw or Ultrasn0W software for either mac or Windows to your computer and install it. It is not a big file and it is self explanatory how to install it as well.

When you need to restore to a previous or a new version of the software on your iphone, you need to download the firmware first.

These are so-called .IPSW files and exists in various versions:

http://iphonefreakz.com/iphone-firmwares/

Download them to a location you remember on your computer for use later when running the redsn0w software.

Redsn0w will also ask for two bootloaders in its sequence of restoring your phone, these two bootloaders, version 3.9 and 4.6 is needed and you can find them here.

http://cazisoft.com/2008/iphone-bootloader-39-46\

Just download them somewhere on your computer so you can browse for them later when redsn0w asks for these files.

Then after installed the redsn0w software, you start it up, plug in your iphone to your computer, turn the iphone off and leave it off till the software tells you otherwise.

If you experience any problems with the software, you will find the forum at the redsn0w web page very helpful. The devteam does a good job of maintaining this web site and its content.

Redsn0w will now ask for firmware, browse for it where you stored the file, and click next.

Then the software will ask for the two bootload files, browse for them and continue.

The redsn0w will ask you if you want to install three elements, you should choose all three options.

There will be a set of instructions for you to follow now, so be ready to press the on-off button on your iphone and not release it until the software tells you. Then be ready to press the home button for the instructed time.

Then redsn0w will tell you it is jailbreaking your phone and asks you to wait for a while.

If this wait takes more than 5 minutes, then do this; disconnect your iphone for 3 seconds, and plug it in again. This should make redsn0w continue and reboot your iphone.

You will now be the proud owner of a iphone or ipod with a restored or updated operating system or firmware. It is also jailbreaked and can be used with any cell phone operator in the world – no limitations or questions asked.

You have to be aware of the fact that if you do this process, all data on your gadget will be lost – forever. Unless you have done a sync with your itunes and can restore the files from there afterwards. 

Just one last crucial reminder in the end- and maybe the most important message to you. Do not, I repeat DO NOT try to upgrade your iphone through iTunes after this. It will only make you get a iphone that is telling you that you have a non-working SIM card and need to replace it. The reason for this is that this firmware you downloaded through iTunes has restored the iphone to its original settings without the jailbreaking, and you have to start redsn0w software again and repeat the same exercise again.

Best of luck with your iphone or ipod and take care.