You were correct, it will work on another GSM network while jailbroken. You just need to be creative in updating the phone, and there's the chance of a future update bricking it.

 

My coworker had one jail broken, it appeared to sync just fine with iTunes.

 

Mine is jailbroken and works fine with iTunes !

 

To clarify, it'll sync music and such with iTunes, but applying OS updates will typically fail or result in a bricked phone unless you do a complete reload.

 

Yes, but thats a minor prob. You just clear it (after you made a backup), install the new OS, load the backup and jailbreak it again.

 

Best link to use to jailbreak a 2g?

 

Not true. You have do more than just jail break it to get it to work without connecting to AT&T's data network. I did this exact thing with my old 2G iphone when I sold it to someone that had the same request as LABrit's. I will look for the steps that I used to do this.

***Edit: True that it will not be supported by Apple, but everything else works just fine, iTunes, WIFI, texting, calls, etc. just no Edge Network connectivity***

 

Just go to JailbreakMe with your Iphone

 

Below is my rough draft notes of how I did it as well as URLs that I used for reference.

***DO THIS AT YOUR OWN RISK*** As Simba said, it is easy to brick your phone.

Could Not Activate Cellular Data Network: You Are Not Subscribed to a Cellular Data Service

Unlockit - APN Changer for your iPhone

How to Use an iPhone Without the Data Plan

Why You Have To Jailbreak the iPhone


Steps:
Jailbreak w/ blackra1n
manage -> edit -> add -> SiNfuL iPhone Repo
install afc2add vi Cydia
download/install DiskAid from Download DiskAid Access iPhone, iPod touch or iPad via USB for PC & Mac
In DiskAid, click on the bottom left and select root.
Then on the folders go to: private > var > root > library.
There you will find a folder named Lockdown. Copy this folder to your computer
to back it up
Then click on Delete from device.
Restart your iPhone.
install bootnueter via Cydia
go here for setting instructions
Jailbreak Unlock iPhone 2G 3.1.2 Firmware with blackra1n RC3 | Redmond Pie

In my case at this point I did a factory restore in iTunes, and when it started to come
back up after the restore, bootneuter flashed the baseband, and everything worked. Plugged
an AT&T SIM in and phone, voice mail, etc. worked.

go to Unlockit - APN Changer for your iPhone on the iPhone (you will need wifi access)
Click Disable Data (Fake APN). The Install Profile window appears.
Click Install. Another Install Profile window will popup warning you that
authenticity of this profile cannot be verified. Click Install on this window too

Now turn off wifi, and try to open a web browser. You should see the following message
Could not activate Cellular Data Network; You are not subscribed to a cellular data
service." You should still be able to make calls, voice mail, etc.

 

This is far too damn complicated for me.

I've got this cydia crap, but the phone still wont work with itunes: says the sim doesn't work.