Uhm.
According to the iPhone dev team, you can currently only jailbreak the iPhone 3G and not unlock it.
You can unlock an iPhone (1st gen) with the 2.0 software on it though! I just unlocked one right now, very entertaining!
Have you signed up for the SA iTunes store? I see you can now sign up. While it mentions the store will not allow purchases you can add the free apps to your cart and download them (I have just done this with Twitterific). Would be interesting to see if you can install them on your newly updated iPhone.