STEP 1: Download Greenpois0n jailbreak (link at the end)
STEP 2: Connect your iPhone/iPod to your computer via USB then launch Greenpois0n jailbreak application and hit "Jailbreak" button.
STEP 3: Follow the steps shown on the next screen shots to put your device in DFU mode.
- Now you have to press and hold the sleep button for 3 seconds.
- Continue holding sleep, then press and hold home for 10 seconds.
- Now release sleep button but keep holding home for 15 seconds.
STEP 5: Now press "Complete" button.
STEP 6: Restart your iPhone, now you will notice Loader application icon on your springboard, hit this icon.
STEP 7: Now press "Cydia", then "Install Cydia". After finishing you will be asked to remove Loader from your device, click "Remove", then press Home button, the device will restart automatically.
STEP 8: After your device restart you will find the Cydia icon, Congratulations.
Note: Since there is no way to unlock 05.14.02 / 2.10.04 basebands, you should upgrade to iOS 4.1 with preserving your baseband before using Greenpois0n jailbreak by following our guide (for iPhone 4 ONLY)