This is How You Unlock Your 1.0x Firmware Versions

well there are different tools to unlock iphone.10x versions
my favorite one is ziphone,
so here are steps you have to follow in unlock and jailbreak with ziphone
1.Download ZiPhone from here

2.extract the rar file to desktop

3.double click the ziphone GUI.exe

4.below is the screen you get when you execute the above exe file
make sure that the iphone or ipod is connected to the PC and detected by itunes.

5.as per your choice to jailbreak/unlock or do it all[activate,jailbreak and unlock] select from the options on ziphone screen.

6.after when you have selected any of the options it would take approximately 4 min to finish the process,here is the expected screen when the process starts
7.its normal that various command process going on the iphone screen,so don't be panic.
so approximately after 4 mins the ziphone tool should say like the image below
8.meantime the iphone should be rebooting after all the process is done

9.There you go its all done,the iphone should be unlocked and jailbreaked when it reboots.