How to downgrade your iPhone from 3.1 to 3.0.1

Before you start download the firmware from Apple
 iPhone Software http://appldnld.apple.com/.../iPhone1,2_3.0.1_7A400_Restore.ipsw

Step 1
Enter DFU mode on your iPhone. This is done by holding in the iPhone's Home and Power buttons for 10 seconds, when the iPhone reboots release the power button.
Setp 2
iTunes will detect the phone in Recovery Mode. Click OK to the message window in iTunes.
Step 3
holding down the ALT (Mac) or SHIFT (Windows) click on the restore button. In the window that pop up select the download firmware (above) and click on open.
Step 4
Once the restore is complete to will get an error message (1015 - iPhone has be downgraded), click OK.
Step 5
Hold down the power and home buttons for 15 seconds or until the iPhones Screen is blank. Release the home button and continue holding the power button until the phone turns on (about 2 seconds).

Enjoy your iPhone using the 3.0.1 firmware and internet tethering with Telstra. Hopefully Telstra will support tethering soon.

Download this file to your phone to enable tethering. tether.mobileconfig (1.79 kb)