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Note: Make sure you have taken a back-up of your iPhone before you upgrade. There are a few known issues with the 3.0 beta – 1. Maps doesn’t work for some people, 2. Syncing takes a lot of time, 3. lots of UI issues with 3rd party apps…  

Steps to upgrade:

1. Sign up as an iPhone developer on http://developer.apple.com/ (you need to pay 99$/year for registration fees)

2. Apple takes about 24 hours to upgrade your status. Once done you will receive an activation code in  your email.

3. Download the iPhone SDK and iPhone OS 3.0 DMG files from their website.

4. Install the iPhone SDK. Run X-Code and find organizer window.

5. Plug in your iPhone and it should be detected in the in the organizer window. 

6. Open the iPhone OS 3.0 DMG file with IPSW image.

7. Click on your iPhone detected in the organizer window.

8. Click on the label which displays the current software version of the iPhone. Select other version and browse to the new DMG with IPSW image.

9. Press Restore. Once the upgrade is done, iPhone will automatically reboot and appear in iTunes.