Dev Team member MuscleNerd has recorded a video demon of their latest jailbreak for iOS 4.1 PwnageTool. The video showed an iPad being restored to a pre-jailbroken iOS 3.2.2.

PwnageTool is a jailbreak method that lets you update your iPhone to the latest iOS while preserving the baseband. This is particularly important if you’re looking to unlock your iPhone as there are currently no unlock available for the latest basebands and there probably won’t be at least until iOS 4.2 comes out in November…

This new version of PwnageTool will presumably work with the iPhone 4, iPhone 3GS, iPad, Apple TV, iPod Touch 3G and 4G. It is supposed to drop on Sunday. We’ll let you know when it comes out and we’ll have our jailbreak guides and tutorials available for you as well.