Hey guys. I have a 1.1.1 iPhone that I had unlocked and virginized, and all that, and it was running 100% ok until I installed the program Screenshot and it put my phone in an indefinite bind-death-loop.

So, I figured I need to re-install the firmware. So, on OS X, I entered DFU mode with iNdependence 1.2.5 (using iTunes 7.4.2) and I get the USB cable to iTunes icon on my phone, and when I start iTunes, I option-click to select the 1.0.2 firmware (so I can do a 1.1.1 upgrade using iNdependence) but as it gets past the "Extracting firmware" part, it just says "Error restoring iPhone. Cannot restore iPhone. (1)"

Any ideas, guys?

Also, now every time I try and run iNdependence, it just crashes, and one time gave the error message "Cannot receive callbacks from iPhone."

Hmmmmm.... my Phone is currently on the USB Cable -> iTunes screen.. and even if I try and restore to any firmware, it will just error out and not be able to restore. Anyone have any ideas?

Your phone is not entering DFU, so forget about iNdepedence (close it). Here is what you do:

Hold down the Sleep and Home button for 10 seconds. Allow the phone to power off, but keep holding down the buttons. After 10 seconds, let go of the Sleep button, but keep the Home button pressed until iTunes sees your iPhone. The screen on your iPhone should be displaying nothing right now.

After that iTunes will ask you if you want to restore, that's when you do the option-click trick.

I really appreciate your help, but this is what I already did.. and I've even tried updating to 1.1.2 or any other FW version, and nothing is working. I haven't seen the yellow triangle "Connect to iTunes" thing yet, just the USB Cable->iTunes screen.

I've done the powerbutton/home button thing a few times now, restarted my computer, re-installed iTunes, used different versions, still nothing.

The phone is in kind of a fucked up mode I think, with this screen.. It just sits on this screen forever and no firmware updates/restores are helpign.. hmm..

Now I got it to update to 1.1.2 ... Locked, do you have a link to downgrade to 1.1.1 from 1.1.2 on OS X? I really appreciate your help, man.. I hate sounding like a newbie on a forum, but in this case I'm kind of shit out of luck.

Now you have the new baseband 4.0.2 from 1.1.2. When you downgrade to 1.1.1 then 1.0.2 your baseband will stay the same. So you have two options:
1) go the anySIM1.1.2u route and then upgrade back to 1.1.2
OR
2) flash your baseband with 3.14 then upgrade to 1.1.1 and unlock with anySIM 1.1.1

I recommend (2)...see this tutorial , it is for windows but works equally for os x since almost everything is done on the iphone
http://hackint0sh.org/forum/showthread.php?t=15436