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I was reading that the reason that why even legit AT&T SIM cards (the ones that came pre-installed) could not be used to activate a previously unlocked iPhone could maybe be because the IMEI number had been modified by the unlocking software. This could possibly have resulted in some kind of mismatch between the phone and it's original SIM.

I don't know for certain whether this is the case, but while we all know unlocking itself isn't illegal, I'm sure I heard a while back that modifying IMEI numbers is.

The unlocks aren't modifying the IMEI. What's happening is that some of the unlocks (iUnlock/AnySim) rewrite a section of the firmware code that is used to validate what a phone's IMEI is. When their unlock patches are applied, this modification has no effect and the correct IMEI is readable. When the patch is removed, part of that modification still exists and the phone is unable to determine its IMEI - so it reverts to a factory default IMEI, the "0049" number.
 
Who would be in favour of Apple giving us the options:

Get iPhone with 1.0.2 Firmware: giving us cool 3rd party apps, but leaving us vulnerable, or
Get iPhone with 1.1.1 Firmware: no 3rd party apps, but safe and stable.

The problem is that Apple doesn't give us the options.... Once it has been "updated" to the 1.1.1 Firmware (or rather OS update AND Firmware update to be precise) you can't go back.

Give me the choice, and I will be happy.
 
Good! (No offense)

As an iPod Touch owner, I'm glad the iPhone has been given the same hard-to-hack software as the iPod Touch. I've have my IPT for three weeks now, but no progress has been made to add 3rd party apps to it, because everyone is busy with the iPhone. Now that they are finally practically identical (tamper-proof wise), I'm confident whatever hacks are released now will likely work on BOTH iPhone and Touch.
 
"This version of the iPhone software (1.0.2) is the current version."

"This version of the iPhone software (1.0.2) is the current version."
- iTunes, Oct 3rd, 2007

Unless Apple has pulled 1.1.1 from the shelves, I believe this is because 1.1.1 uses encryption, and requires a newer version of iTunes. I have an older version of iTunes (7.3.0.54) on my Windows PC at work, which I use to sync Calendar and Contacts. I have disabled automatic updating for iTunes. I have the current iTunes on my Mac at home and sync my media with that. I use iToner on the Mac and I had to use an older (pre-ringtone) version of iTunes on Windows because Ambrosia's iTunes on Mac plug-in that allows them to transfer ringtones isn't available for Windows.

iTunes.JPG
 
The unlocks aren't modifying the IMEI. What's happening is that some of the unlocks (iUnlock/AnySim) rewrite a section of the firmware code that is used to validate what a phone's IMEI is. When their unlock patches are applied, this modification has no effect and the correct IMEI is readable. When the patch is removed, part of that modification still exists and the phone is unable to determine its IMEI - so it reverts to a factory default IMEI, the "0049" number.
Very interesting. I had the same question regarding IMEI changes in the firmware. Thanks!
 
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