I bought a second phone from an officemate and unfortunately I have it restored to factory defaults. With wide information about jailbreaking an iphone this post simply rocks and help me out with jailbreaking this iphone 2G. Thanks to simon. I have my Iphone 2G working as default and jailbroken.
http://www.simonblog.com/2009/06/25/complete-guide-jailbreak-iphone-3-0-using-redsn0w/