The iPhone Dev-Team has successfully completed the upgrade of a jailbroken iPhone 3GS from 3.0 to 3.1 without losing the jailbreak. 

CPICH confirmed the news from his twitter account. 

This means that we will likely see an update to PwnageTool which will add support for creating a custom ipsw that will be used to upgrade your iPhone 3GS. 

(via iPhone Dev Team Blog & iClarified.com)

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Categories and Tags Featured, Firmware 3.0, Jailbreak/Activate, Software Unlock - YES! 3.0, 3.1, iPhone 3G(S), iPhone Dev Team, iPhone OS, jailbreak