Step One
Open your web browser of choice and navigate to http://www.blackra1n.com. Click the Windows logo at the bottom of the screen.
Step Two
When prompted save the download to your desktop
Step Three
Then double click the blackra1n executable file from the desktop to launch the program
Step Four
Make sure your iPhone or iPod is connected to the computer then click the large make it ra1n button
Step Five
You iPhone will now be placed in recovery mode.
You will see a picture of GeoHot that replaces the regular recovery mode screen on your device.
blackra1n will run and then your device will reboot.
A popup message will appear informing you that BlackRa1n is free software and if you appreciate it you can donate to GeoHot at geohot@gmail.com.
Step Six
Once your device reboots it will be jailbroken and you will notice a blackra1n icon on the Springboard. Make sure you have an internet connection and press to launch the application.
Choose the installer application of your choice then press to select sn0w if you would like to unlock your device. Press the Install button at the top right of the screen to begin.
BlackRa1n will begin to download and install the package you selected.
If you chose to unlock device using blacksn0w you will be presented with a Post Install log for sn0w. CommCenter will be restarted and there is no need to reboot. If your carrier doesn't support 3G then disable it. Press the Close button to continue.
Step Seven
Once complete BlackRa1n will respring your iPhone and you will find the installer package of your choice on the Springboard.
Step Eight
Once you have confirmed your installer package is working correctly you may use the Uninstall blackra1n button inside the BlackRa1n app to remove it from your springboard.
***THANKS: A big thanks to Geohot for making this jailbreak possible.