Yes it does. The rule of thumb is that whenever Apple releases a new firmware, DO NOT UPDATE. Go to iTunes, and JUST SAY NO when it asks you to update your OS/Firmware. Wait the 2-3 weeks for the jailbreak and unlock to be released. THEN update, jailbreak and unlock your iPhone. It's a pain in the ass, but it's well worth it to be able to keep the privelage of jailbreaking and unlocking.