You make it seem like there's a plethora of jailbrekaing tools out there. Haha.
Not the intention, but I don't feel like messing around with Pwnagetool really :P
Is there a good place i can find a tutorial of jailbreaking? Or should i just download redsnow and follow the readme.
Also should i really upgrade to 3.0 firmware before doing this?
Upgrade to the 3.0 firmware, that's what redsn0w's designed for. After that, open the app up and follow the instructions. Be prepared to hold down the Home+Sleep/Wake button for the time that it specifies, but it allows a bit of slack so don't worry if you held something down for 8 seconds instead of 10 seconds if everything on the screen starts to change.
If you're really insecure, check out YouTube - but honestly, it's either going to work or it's going to start up your device normally.