How To Jailbreak iOS 4.2 iPhone 3GS With PwnageTool Bundle
For those of you with an iPhone 3GS on iOS 4.2, you don’t have to downgrade iOS 4.2 to 4.0.x just to jailbreak your device. MSFT guy has released PwnageTool bundle which can jailbreak iOS 4.2 on iPhone 3GS (old bootrom). Similar to PwnageTool for iOS 4.1, this one preserves older baseband, so that you can later unlock it with Ultrasn0w.
PwnageTool Bundle
For those of you who are unaware of what a PwnageTool bundle is, it is a patch to the official PwnageTool released by the iPhone Dev Team so that it works with the latest firmware.
Disclaimer: Use this unofficial PwnageTool Bundle at your own risk. We are not responsible if you brick your device.
Note: iOS 4.2 is not compatible with Cydia, so you will not be able to install any jailbreak apps online. However the manual copy and install method via OpenSSH still works.

Is My iPhone Supported
Yes, if it satisfies the following
1. It should be an iPhone 3GS and on old bootrom.
2. It should have been already pwned on iOS 4.1, iOS 4,iOS 4.0.2 using PwnageTool, Redsn0w, or Sn0wbreeze. JailbreakMe and Spirit jailbreaks will not work.
Work around: Downgrade iOS 4.2 to iOS 4.1 or lower version and jailbreak with PwnageTool to start all over again.
Jailbreak iOS 4.1 iPhone 3GS with PwnageTool
Jailbreak iOS 4.0.2 iPhone 3GS with PwnageTool
Jailbreak iOS 4.2 iPhone 3GS With PwnageTool Bundle
The first part of this process is to patch the official PwnageTool with the bundle, so that it works with iOS 4.2.
Patch PwnageTool With PwnageTool Bundle
1. Download PwnageTool 4.01, PwnageTool Bundle for iOS 4.2 (iPhone2,1_4.2_8C5091e.bundle). All links at bottom.
2. Download iOS 4.2 for iPhone 3GS (currently available for registered developers, will be released soon).
3. Right click on PwnageTool 4.01 and select ‘Show Package Contents’ to open the archive.
4. Copy the PwnageTool Bundle file (iPhone2,1_4.2_8C5091e.bundle) you earlier downloaded and paste it in Contents/Resources/FirmwareBundles folder of the package you just opened.
That’s it. PwnageTool is now patched, so it is ready to create a custom firmware for your device to jailbreak it on iOS 4.2.
Now follow the below steps to jailbreak iOS 4.2 with PwnageTool.
Jailbreak iOS 4.2 With PwnageTool 4.01
1. Back up your iPhone data including music, contacts, apps, settings, pictures, calendar, notes, messages via iTunes sync.
2. Launch PwnageTool, select ‘Simple Mode’ button in the top toolbar, select your device model (iPhone 3GS) and click the Next button (blue arrow).

4. Click ‘Browse for IPSW..’ and select iOS 4.2 IPSW you downloaded to your desktop and click the Next button.

5. When asked if you have an iPhone contract that you would activate normally through iTunes, click No. What the question means is that if you are on an official carrier. Clicking No tells PwnageTool that you are on an unofficial carrier and would like to later unlock your device. It will then not update your iPhone baseband.
6. PwnageTool will start building custom IPSW to jailbreak your iPhone. Wait till you see the ihaz Success! message which is shown after the custom IPSW firmware is cooked.

7. Restore your iPhone to the custom iOS 4.2 firmware. To do this, start iTunes, select your device and pressing the ALT key click + the Restore button.
8. Browse and select the custom firmware file on your desktop and let iTunes restore your iPhone 3GS.
That’s it. Once the installation is done, you will have an iPhone 3GS jailbroken on iOS 4.2.
!Important: Don’t install Mobile Substrate on 4.2 or you’ll get stuck on boot.
Download PwnageTool Bundle (iPhone2,1_4.2_8C5091e.bundle)
UPDATE: PwnageTool Bundle version 2 (iPhone2,1_4.2_8C5091e_v2.bundle) with iBooks issue fixed now available for download.
Download iTunes 10

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