How did you escape the recovery mode loop? I used TinyUmbrella TSS server to restore my custom Pwnage 4.2 (with special 4.2.8 file) and a 4.2.8 firmware bundle for Verizon, but I keep getting the USB w/iTunes plugin icon, and iTunes keeps saying phone is in recovery mode. I can't get out of it. TinyUmbrella (latest version) does not kick phone out when clicking fix recovery, and the downloaded fixrecovery43, and fixrecovery421 files appear to run on the phone after going into DFU mode, but it still doesn't work.
I'm downgrading to 4.2.7 which shipped on my phone until I can do more research into this as it seems as though very few people with the Verizon phone have had any luck. Jailbreaking my iPhone 3G's were easy compared to this CDMA model.
Update: I restored with factory 4.2.7, used fixrecovery421 to boot the phone out of recovery mode loop. I don't know why it didn't do it to the custom 4.2.8 firmware... other than Pwnage doesn't officially support it (and you need the Verizon-4.2.8-PT-bundle.zip addon) AND/OR the fixrecovery43/421 executables might not have been updated to support 4.2.8. What a waste of three hours.