Yes they will and they should it also depends on how the iphone was unlocked.

There ones which users normally unlock via the net and face problems when the new software upgrade doesnt recognise the unlock.

Namely going from 2.0 to 3.0 software version.

On the other hand if these are legitimately unlocked then upgrading of software is no issue.

As my families iphone, these were unlocked by Apple Australia and when the time came to upgrade them from 2.0 to 3.0 I had no issue what so ever.

Hope that helps.

mojo1981