I've done all that and it still doesn't work

mayb you should get your seventh iphone

ok u still have iliberty right???
Get it

now connect your phone to ur pc
open iliberty and see if at the bottom it says NORMAL MODE
if so iliberty has recognised your phone.

IF iliberty recognises your phone go to the other tool tab in iliberty and click on "ENTER DFU MODE" itunes should recognise your phone in recovery mode
restore now and unlock with iliberty

if by chance iliberty DOES NOT recognise your phone go ahead and get the seventh iphone........kidding
use this method to put your phone in DFU mode and restore
http://www.iclarified.com/entry/index.php?enid=1034

Will do that now!

If it doesn't work...I may just have to buy an iPhone with O2....NOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO OOOOOOOOOOOOOOOOOOOOOOOOOO

I put the iPhone into DFU (USB+iTunes loge with red background) but when I updates I got some error..something like 1611 or something like that. Then the red background changed to black and I was able to update... I'm doing the unlocking at the moment but I amn't holding out too much hope

It didn't work