I'm having the same issue. pwnage 4.0.2 seems to think I have a version of iTunes less than 8.0 when I actually have v10.
I went ahead anyway with the pwnage tool but at the end of the process, I get a 1604 error ((3Gs, v4.0.2). That seems indicate some problem between the iPhone and iTunes connection. I'm not sure if the error is related to pwnage or a connection between the iPhone and iTunes.