I wouldn't enable the locked out features from the 3GS (multitasking, custom wallpaper, etc) even though pwnage tool lets you. I found it ran far too slow on my 3G.
I just jailbroke and unlocked my 3G yesterday and placed it on Ebay.
I was getting frustrated with all the failed attempts trying to use the links and recommended downloads listed all over the place including the threads on MacRumors.
This is using Redsn0w and UltrSn0w
I finally found the right downloads and jailbroke/unlocked using the downloads from HERE