Thanks Jav6454. Per your suggestion, and with the great tutorials on iclarified, brought iphone down to 1.1.4 and itunes to 7.5. No problems. I then started the unlocking process with Pwnage. Problems.
I get all the way to the to the "ipwner button" step with no issues. But when the "Pwning" begins it says: "sucessfully started pwning on your iphone/ipod"
But nothing else happens. The "dock+itunes" recovery mode logo stays on the iphone - no white scrolling "firmware" text that as shown in the videos. no reboot. nothing. 3o minutes and counting and no change. Same with 2nd attempt.
Help. What could be the issue here? Thanks in advance for all of your assistance.
Regards,
Josh
UPDATE: After going back and reloading the 1.1.4 again it appears to be working. Will update later. Thanks!