I have a 2G 16GB iPhone, with jailbroken/unlocked 2.1 firmware installed using pwnage 2.1 on a Mac. Today I was listening to a podcast and received a text message and then the phone went into Kernel panic mode with a bunch of text on the screen over the pineapple logo. The last line of text is "panic: we are hanging here..." I reset the phone several times and each time it would still pull up this kernel panic screen. I have put the phone into recovery mode (the screen with the comic of Steve Jobs) to restore the phone with both the hacked firmware and the original firmware. Each time in iTunes it gives the message extracting software and then preparing to restore phone, at which time the kernel panic screen comes back up on the iPhone. In addition to the Mac, I have also tried on a PC running Vista and a PC running WinXP, all with the same result. I'm at my wit's end, is my phone pretty well screwed, or does anyone know of anything else I can do?