Jailbreak
There is a program that will do everything for you, and for every iPhones and iPod Touch(all firmware versions and sizes).
Jailbreak iPhone
Just go to ZiPhone.org and download the application. Then you are 1 click away from 3rd party applications.
There are also programs like iLiberty, iLiberty+, Pwnage, etc. I feel ZiPhone is the quickest. . .and easiest.
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