If I remember correctly, this isn't how it went down. You would initiate an emergency call or something and then end it to enter in a contact that could launch settings. Boy that was a looooong time ago.
That was the original jailbreakme website for 1.1.1 firmware. That was not the first program to jailbreak with.
The ORIGINAL jailbreak was done with the programs "iPhoneInterface" and "Jailbreak". Then iPHUC came along. We used commands like getfile and putfile and we mv'd now and then and renamed. Unfotunately I deleted many of my 1.x tutorials and only maintain guides for 1.1.4 which use more automated programs like iLiberty and iNdependence. Even then it was still a bit of a pain to do things.
Here is my original ringtone tutorial that I wrote with some of the earlier members of the team. This uses iPhoneInterface and Jailbreak to accomplish its tasks.
http://www.hackthatphone.com/1x/custom_ringtones.html
Hilarious! It was a lot of steps just to put a ringtone on the dang phone back then. And you had to rejailbreak each time to add another one.
Being able to use other authorized SIMs on the AT&T network was the first major hack on the phone. We used a program called iAsign written by iZsh, and others. I was able to use my Cingular SIM in the iPhone to make and receive calls. This was on July 18, 2007. Once again iPhoneInterface and Jailbreak came into play to do this:
http://www.hackthatphone.com/1x/how_to_use_a_cingular_sim_in_the_iphone.html
I no longer host those programs iPi and jailbreak so don't bother clicking the links they aren't there. I only recently deleted those programs as they are so archaic. I still have iAsign however.
Edit: I found the jailbreak/ipi programs at the original link they were at back in '07
http://www.wotan.org/jailbreak11.zip
Edit: For more historic information check out the iPhone Wiki. This isn't the original version by the dev team, apparently all that data was lost. A year later or so GeoHot attempted to recreate all that information, so there may still be some information you want there that would be helpful to you. Modmyiphone.com (now modmyi.com) also had some great information back then so search their site as well. Their guides appear to only go back to 3.0. I can't even find their wiki anymore. I'd think that would have the original articles. Probably gonna have to dig through the forums!