A quick search today and I found fastra1n. It supposedly will jailbreak and unlock all iOS devices up to iOS5 except for iPad 2 and iPhone 4S.
They are selling it for $24.99 (which in itself makes me suspicious) at FastUnlockiPhone.com Fast Unlock iPhone Team Unlock iPhone 4/3Gs/3G 4.3.5/iOS 5.0 - jailbreak iPhone 4/3Gs/3G iOS 5.0
They are selling it for $24.99 (which in itself makes me suspicious) at FastUnlockiPhone.com Fast Unlock iPhone Team Unlock iPhone 4/3Gs/3G 4.3.5/iOS 5.0 - jailbreak iPhone 4/3Gs/3G iOS 5.0