I used Da Vinci team's software to unlock my Sony Ericsson with great success. They support many different kinds of phones and I had no issues with them. (You can also upgrade your firmware to a higher end model)
The website is easy to navigate and it offers a simple way to buy unlock credits.
The only thing is that you will usually be required to have a cable capable of flashing your handset to modify your firmware. For Sony's, some require a special cable (different from the one in the box) to unlock the phone (thankfully, we bought ours for cheap in Hong Kong).
There is a lot of required reading since it is possible to brick (kill) your handset.
Note: There isn't anything wrong with unlocking your phone but you will most likely void your warranty.
Update (shipping is free): Noticed Deal Extreme has unlock SIM cards on their site. I have no idea how they work but its worth a look/bookmark.
They also have an iPhone one that doesn't break your warranty for about 36$, nice.
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