Did you try Tinyumbrella's "Kick out of recovery..." option? If that doesn't work, try using Pwnagetool (Mac) or Redsnow (Windows) put phone into special DFU mode, and then, restore with 4.02 or 4.1 custom firmware fine (one that keeps the baseband). If that still fail, you only other option is to restore to official 4.2.1 because tha's the only SHSH files you have saved which would also update the baseband to 3.10.