In order to restore your iPhone, the firmware needs to be signed by Apple. iTunes connects to Apple for "permission" to install the firmware. This signature is device specific. When Apple releases a new firmware, they stop signing the older firmware. This "permission" file is your SHSH, called blobs or hashes. Cydia stores your SHSH on their servers and when you restore using an older firmware, you can direct iTunes to search for the "permission" from Cydia instead of Apple. This allows you to downgrade firmware. But if Cydia does not have your SHSH on file for the specific firmware you are looking to install, then you will not be able to install this firmware. When you open Cydia, at the top of the screen, it will say SHSH: iOS xxxxx where the x's are the firmwares that Cydia has these SHSH hashes on file. You can only install firmware to these OS versions, or the current Apple version (4.1). Since Cydia says 4.0.1, you can restore to 4.0.1 and then re-jailbreak with jailbreakme.com. You'll have all of your personal data removed.