I know this may be a stupid question. But does the phone have to be activated in order to do the hardware unlock? For what ever reason after i upgraded the firmware to 1.0.2 I can't seem to activate. however i was able to use use ibrickr and install the binkit and ssh.

yes, coz activation is required to avoid "INCORRECT SIM"

Is there a windows version of iactivator?

I'd suggest you to try this:

http://hackint0sh.org/forum/showthread.php?t=3658

Not only it activates your phone with youtube working, but also it makes your phone SIM independent, so you don't have to reactivate it every time you change SIM cards.

Why don't you give it a try?

[]'s

You are the man. Thanks.