A bit of a confusing unlock/upgrade/jailbreak question

[Khurram]

So here is my situaiton:

My wife's Iphone 3g is not unlocked nor jailbroken at this time.
It is on ios 3.1.2 w/ modem firmware :05.11.07

The SSHH blobs have never been uploaded anywhere.

What would be the best way to upgrade to do wipe everything from the phone, upgrade to ios4 and unlock/jailbreak the phone?

Thanks in advance..

 

[thelatinist]

It's not a confusing question. It's a common question that's been answered dozens of times on here and could easily have been solved with a Google search. Here's a tutorial.