According to AndroidGuys,, a fairly popular online website that is known to sell unlocked phones, has begun to sell a contract-free T-Mobile G1 for $499. After digging through the CellHut website it looks like it isn't a fully unlocked version since it specifically states that it's only compatible with T-Mobile.

The news that it isn't unlcoked is a bit strange but if you're looking for a place to buy your T-Mobile G1 you can now add and to your list of options.

[CellHut via AndroidGuys]