Same problem solved
I had the same problem but it was solved by doing what the above poster has suggested.
You don't have to plug your phone in to do this.
Start Pwnage 2.0.3.1
click "Expert Mode"
When you get to the dialog box that has the "Activate" check box by default it is checked. You must UNCHECK this box.
Then use your "iPhone1,2_2.0.2_5C1_Restore.ipsw" to make a new custom ISPW restore. Save it to desktop.
When you have finished this plug your phone and just quit iTunes when it opens automatically.
Turn your phone off.
Then Press the sleep button and the home button together for 10 seconds
After 10 seconds take your finger off the sleep button and just keep hold on the home button for 10 seconds and let it go.
iTunes will open and tell you it has found an iPhone in recovery mode ... click OK
Then holding the option key on your Mac click restore and a dialog box will open to find the new custom restore file on your desktop. Restore with this.
If you have a problem with iTunes ahter this just eject the phone and unplug it.
Restart iTunes and plug your Phone in again. I found it easier to then begin as a new phone and re sync everything again after this.
If Mail App crashes or you have password problems with it or WiFi just download Boss preferences with Cydia and fic permissions.
Hey I went through the process 5 times in two days before I found out about this checkbox. I really thought I'd stuffed my phone and had to go back to 2.0.1 every time.
All OK now though. Hope this helps
