I have the 1st iphone, that is just sitting around collecting dust. I want to start use it as a ipod touch. I want to jailbreak it. I went to QuickPWN and tried, and I got as far as when you have to restart your phone in restore mode. I then get a error message saying they can't find ipod. They ask if I want to retry but QuickPWN just get stuck. I am running the lastest version 2.2.1. If anyone can help that would be great!!! Thank in advance.
If you are using a Mac and are on 10.5.6 then it is probably your computer. You should try the fix listed on this blog.
I don't think you even need to jailbreak an un-activated iPhone to use it as an iPod Touch. Can't you just put it in Airplane Mode? P.S. Get a USB hub.
However, if there is no SIM card present in the iPhone, can it even fire up? It should prompt u to insert a SIM card right?
Wrong. You can only make emergency calls. It needs to be activated or "hacktivate" to be used without a sim card. Unless it has previously been used with a sim card, and it was simply removed. But out of the box no, the phone will not function without an initial sim card insert.