For those who are having the baseband too old use 1.8, could it be that we are using the wrong bootloader firmware along with the bbupdater?? Where do these go? BOOT03.01_M2S1.fls, BOOT03.08_M3S1.fls and BOOT03.08_M3S1.fls.

The bootloader starts on poweron; its primary tasks are to launch the main firmware or to initiate the firmware update process if needed. The bootloader firmware files are BOOT03.01_M2S1.fls, BOOT03.08_M3S1.fls and BOOT03.08_M3S1.fls. The bootloader occupies two first blocks of the NOR.

The main firmware is responsible for all the network activity of the phone, it's the "phone"'s part of the iPhone. The main firmware file is ICE03.12.06_G.fls. The main firmware occupies space beginning with the third block of the NOR.

The eeprom contains some extra information for the device such as hardware addresses of the WiFi and BT modules, radio calibration data, simlock information and other. The file containing default eeprom settings is ICE03.12.06_G.eep. The eeprom occupies space in the NOR just after the main firmware.

Retrieved from "http://iphone.fiveforty.net/wiki/index.php/Baseband"

Looks like these files were only present in the 1.0 firmware in /usr/local/firmware.

Maybe this explains why we can't restore back to 1.0 from 1.0.1 or 1.0.2.

Those files are the firmware that came with 1.00, they just have a different name under 1.02.
This wiki is just outdated