I found the solution to this common problem. I was so excited to have my unlock back, I had to share it:
http://extechblog.wordpress.com/2010/03/23/blacksn0w-crashes-3-1-2-firmware-05-11-07-baseband-3gs-no-shsh-on-file-solution/
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blacksn0w crashes 3.1.2 firmware 05.11.07 baseband 3GS, no shsh on file (Solution)
Many have reported having a problem where blacksn0w works for a period of time on a 3.1.2 firmware 05.11.07 baseband 3GS, but then crashes and goes into a permanent boot loop. Upon restoration, blacksn0w no longer unlocks the phone, but rather the phone simply says “Searching…”, freezes, and enters into another boot loop. The problem seems to result from a corrupted baseband. Restoring with custom 3.1.2 firmware with blacksn0w included doesn’t fix it, nor does restoring with 3.1 and trying to blacksn0w.
The problem should be fixed by a factory restore to 3.1.2 firmware, which will refresh the baseband to 05.11.07 and allow you to unlock the phone again. However, if you don’t have your 3.1.2 shsh on file, you cannot complete a factory restore and are stuck with custom jailbroken firmwares that don’t include baseband updates (only for non-tethered/old bootrom 3gs').
Solution: Manually flash to the phone the 05.11.07 baseband update extracted from an official 3.1.2 3GS firmware. You don’t have to have your SHSH on file, but your phone has to be bootable. Use a custom 3.1.2 ipsw from pwnagetool to get up and running if you are still in the boot loop and dont have your shsh (only for old bootrom non-tethered 3gs'). If you are stuck in a recovery loop with a tethered jailbreak/new bootrom and don't have your 3.1.2 shsh on file, you may be out of luck getting back to 3.1.2.
Solution:
http://extechblog.wordpress.com/2010/03/23/blacksn0w-crashes-3-1-2-firmware-05-11-07-baseband-3gs-no-shsh-on-file-solution/
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http://extechblog.wordpress.com/2010/03/23/blacksn0w-crashes-3-1-2-firmware-05-11-07-baseband-3gs-no-shsh-on-file-solution/
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blacksn0w crashes 3.1.2 firmware 05.11.07 baseband 3GS, no shsh on file (Solution)
Many have reported having a problem where blacksn0w works for a period of time on a 3.1.2 firmware 05.11.07 baseband 3GS, but then crashes and goes into a permanent boot loop. Upon restoration, blacksn0w no longer unlocks the phone, but rather the phone simply says “Searching…”, freezes, and enters into another boot loop. The problem seems to result from a corrupted baseband. Restoring with custom 3.1.2 firmware with blacksn0w included doesn’t fix it, nor does restoring with 3.1 and trying to blacksn0w.
The problem should be fixed by a factory restore to 3.1.2 firmware, which will refresh the baseband to 05.11.07 and allow you to unlock the phone again. However, if you don’t have your 3.1.2 shsh on file, you cannot complete a factory restore and are stuck with custom jailbroken firmwares that don’t include baseband updates (only for non-tethered/old bootrom 3gs').
Solution: Manually flash to the phone the 05.11.07 baseband update extracted from an official 3.1.2 3GS firmware. You don’t have to have your SHSH on file, but your phone has to be bootable. Use a custom 3.1.2 ipsw from pwnagetool to get up and running if you are still in the boot loop and dont have your shsh (only for old bootrom non-tethered 3gs'). If you are stuck in a recovery loop with a tethered jailbreak/new bootrom and don't have your 3.1.2 shsh on file, you may be out of luck getting back to 3.1.2.
Solution:
http://extechblog.wordpress.com/2010/03/23/blacksn0w-crashes-3-1-2-firmware-05-11-07-baseband-3gs-no-shsh-on-file-solution/
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