Update : Note to 3G Users - If you upgrade in iTunes to 2.1 and have intelliscreen installed (or other programs that modify your com.apple.springboard.plist you WILL get the Spinning Wheel of Death after you upgrade and have to restore.
Step 1) Download your files and place them on the desktop.
3g firmware or 2g firmware,
quickpwn gui 1.2 for firmware 2.1
TotalCommander
T-PoT.1.1
2.1.MI.patched.zip
Step 2) Start itunes v8
Step 3) Select restore or update while holding shift.
This will prompt you to chose a firmware to restore and update, chose your 2.1 firmware file that you downloaded onto your desktop. Select it and press open.
You should see the process start.
When complete you will see.
When this screen pops up your phone should become activated.
Step 1) Download your files and place them on the desktop.
3g firmware or 2g firmware,
quickpwn gui 1.2 for firmware 2.1
TotalCommander
T-PoT.1.1
2.1.MI.patched.zip

Step 2) Start itunes v8

Step 3) Select restore or update while holding shift.

This will prompt you to chose a firmware to restore and update, chose your 2.1 firmware file that you downloaded onto your desktop. Select it and press open.
You should see the process start.
When complete you will see.

When this screen pops up your phone should become activated.

