iphone unlocked on Tmobile can't get past itunes message

I am VERY NEW to the iphone. I've been reading and researching for awhile, but really only learn by actually doing/trying something and going through the process. I got an iphone 2, running 3.1.2. I worked with my Macbook and downloaded Blackrain, which gave me Cydia. Through Cydia, I found UltraSnow and tried that. No luck. Further research led me to try Bootneuter, and I ran that. Now the Tmobile SIM card is in the iphone and I can receive calls. BUT, the screen is stuck on the itunes icon and I can only make outgoing emergency calls. Upon connecting to Itunes, I get the message that Itunes has detected an incompatible SIM card. I have rebooted the phone several times, and nothing has changed. Can anyone suggest something to help this problem? I'm sure I've missed something, but I can't figure out what.

 

Additional information

Perhaps this would help someone help me:

My iphone is 2g, version 3.1.2 (7D11), the modem firmware is 4.05.04_G, the Bootneuter version is 2.1 and the Bootloader version is 4.5, but there is an option for 3.9.

Thanks for any help or suggestions - please make it basic, thanks.