This took me 2 hours to locate all information and finally get it going so i thought i would go ahead and post what i did and how it worked for me, if any of this has already been said i appologize, but i just dont want anyone thinking about whipping the iphone at the wall, like i almost did.
1. Downloaded QuickPwnRC3 from here ( iphone-hacks.com/downloads/file/138
2. Downloaded 2G ipsw 2.0.2 from a search in google, got it from apple.
i know sounds wierd 2g 2.0.2??? trust me just do it, it worked. When i got it, it was a zip file, i just deleted .zip and put .ipsw
3.Already had itunes 8.2 but if ya dont got it, go get it.
4. download quickpwn 2.2.5-2 from thier site
5. Download 2.2.1 firmware, goole your best friend.
6.Open QuickpwnRC3 and follw the steps and select 2.0.2 IPSW and when the screen turn to White color , unplug the USB ( Screen will remians White color). As soon as that screen turns white PULL IT.
7.CLOSE QUICKpwnRC3
8. Plug the usb back in, and open itunes, it will find it in recover mode. Hold Shift and click restore, and browse to the 2.2.1 you got earlier.
9. Once thats all done and you have that nice error, close itunes, UNPLUG the iphone, that messed me up for a while, hold down sleep/power, and home for 15 secons, 15 seconds, 15 seconds, make sure to wait the full 15.
10. now that we have a black scree plug it in, hold power for 2 seconds, then launch quickpwn 2.2.5-2 and select the 2.2.1 firmware, and i went ahead and let it jailbreak it, went smoothly. Only my carrier did not update, so i wouldnt reccomend letting the jail break process go all the way through. Just get to the rebooting stage, then reboot.
I hope this saves some one a lot of time, cause i wish i had that good of explaination when i tried.