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Use itunes to restore to 1.1.4 (not update), then use ziphone for the unlock, then the phone should be working again.

To get he iphone into restore mode just hold power and home until the phone turns of, then quickly release the power button and hold the home button. and the phone will show up in recovery mode in itunes! If you already have 1.1.4 just restore it again, and if you are on a earlier firmware just press update and restore!
 
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