Two days ago, when Apple dropped the 2.2.1 Firmware Version through iTunes that fixed the Image resizing bug and crashing Safari issues, it didn’t take time for the Dev-Team to quickly send out a warning to the millions of iPhone users in the world, to “Hold their horses“.

Preliminary analysis done by the Dev-team indicated that the 2.2.1 firmware update also updated the baseband of the iPhone, essentially patching the hole that the yellowsn0w unlock was injected through. As expected, the team has now posted details on their blog for users of all four types of devices, essentially underlining the fact that they’re ready with the counter-attack for the new firmware release.

If the long post explaining the nitty-gritty details is making you nauseated, here’s what it ultimately boils down to:

• First generation iPhone owners can use iTunes to upgrade to 2.2.1 without worries, and then use QuickPwn to jailbreak their phones.
• The above is also true for owners of the first generation iPod Touch. Simply update to 2.2.1 and use QuickPwn to jailbreak.
• iPhone 3G owners, who wish to unlock their phones should use PwnageTool to create a custom .ipsw file and then use that to upgrade to 2.2.1
• Second generation iPod Touch users are still left stranded out in the wild, though the team is effectively working on redsn0w as well.

The updated versions of PwnageTool and QuickPwn will soon be seeded, so head over to the Dev-Team blog to know when you can get your copies. Don’t forget to let us know how the upgrade went.