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According to AndroidGuys, CellHut.com, 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 CellHut.com and Amazon.com to your list of options.

[CellHut via AndroidGuys]