Baseband error fixed or not??

Hey guys,
my story is i bought a fsulty iphone 2g from ebay with the error message "Repair Needed: iPhone cannot make or recieve calls". I googled and followed this tutorial - http://modmyi.com/forums/general-ip...eeded-iphone-cannot-make-receive-calls-2.html

After i've done it the iphone stays saying "no service" at the top and after a while pops up with some sort of message saying somthing about "activation failed, could not find signal"

So naturally i thought the tut had failed but when i go to "settings"-"General"-"About" I have an IMEI, ICCID and modem firmware number (which i dont think i had before)

Anyone know whats going on?
Please try to help even if your not too sure..
The first person who sorts out the problem can have a paypal donation...
Thanks guys

EDIT: I did all this on 1.1.4 firmware. Would updating to the newest firmware make it work????