Updating to the latest official Firmware or taking the leap to Jailbreak are both easy steps.
Remember to sync and back up all your data before you do either.
Updating your iPhone or other iOS device to the latest firmware version
To update to the latest software version just connect your phone to iTunes . iTunes will check for the latest version and prompt you to download and install it. Just follow the on screen instructions in iTunes from there.
Jailbreaking your iPhone or other iOS Device
Jailbreaking is performed entirely at your own risk and will void your warranty should you need to return your phone for any reason.
The easiest way to jailbreak your device is to you a service called “Jailbreakme”
It is this simple: Just visit www.JailbreakMe.com form your iOS device, then simply tap on the “Free” icon, once you have tapped the “Free” icon it will change into the “Install” icon (Tap this install icon).
Now that you have done the above Cydia will install on your iPhone, iPad, or iPod automatically, this is simple, down and dusted. Please reboot your iOS device.