IPhone 3GS 32GB.... Please assist

Just purchased the new iphone 3GS 32GB from the Sydney apple store [AU $1040] ... the phone had 3.01 software and I would like to upgrade to 3.1... Is it safe to do so through the itunes coz I'm not sure whether its factory unlocked or locked ?.... Is there anyway to check whether its unlocked or locked?.... I also was able to get cydia installed in it by a technician and was also wondering whether that affect if it will be fine to upgrade through itunes....

I could tell you to upgrade to 3.1 with no fear. I did and it works fine. I predict that you will also get several posts here telling you to NOT upgrade for various reasons. The only thing I can add is that most people who upgraded have no problems.
And yes, if you don't upgrade, your phone will probably work as well as it would have with with 3.1.

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