Jailbreaking is a process that allows iPhone and iPod Touch users to run unofficial code on their devices bypassing Apple’s official distribution mechanism, the App Store. Once jailbroken, iPhone users are able to download many applications previously unavailable through the App Store via unofficial installers such as Cydia and Icy. It’s estimated that 4 million (out of 40 million) iPods and iPhones are jailbroken. 
Jailbreaking is distinct from unlocking, which is the process by which a mobile device is made compatible with telephone networks it was not specifically licensed to be used with.
Here is step by step how to jailbreak iPhone with 3.0 Firmware using RednSn0w in Windows.
Make sure your iPhone’s firmware has been updated to 3.0 firmware.
Once this is complete you will be notified that RedSn0w is done. Click the Finish button.
When your iPhone finishes reboot (5 minutes or so). It will be jailbroken with Cydia on the SpringBoard.
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