I have a 3G with 3.0.1 and would like to upgrade to 3.1.2 can someone please point me in the right direction. I would like to jailbreak and unlock as well.
Since Apple is no longer signing iOS 3.1.2, I don't believe upgrading to that is possible. You're going to have to upgrade to iOS 4.0.2 and jailbreak using redsn0w.