nope just went straight into restoring with Itunes with Shift + IPSW... I think first time I tried to restore i chose the wrong IPSW. I used the one I downloaded (iPhone3,1_4.2.1_8C148_Restore) not the one i created with IFaith. Don't know if thats the issue.
I already tried deleting the files under App data.
Also I tried using IReb on Ifaith.
Ok I tried again using Ireb once again and this time it went through.
The phone is going through its restoring process now.