You do not need PwnageTool. Where on that tutorial did it tell you to use PwnageTool? This is just telling me you didn't even read the thread, never mind attempt what it told you to do.
The thing doesn't even need to be on! It's better to be off!
Just plug it in, hold the Home and Sleep/Wake buttons for 10 seconds, then release the Sleep/Wake button, and continue to hold the Home button. Chances are iTunes will start spamming you with pop-ups.