To cut a really long story short,

I have a 1.1.2 - 4.6BL phone that was ones activated officially with a 02 contact after a few days I canceled the contract within the cooling of period, now I have a working phone with just the No Service message.

I just tried restoring to 1.1.2fw by just simple plugging the phone in holding shift selecting the 1.1.2fw etc and it doesn’t work, its starts preparing then errors out with 1609 ever time

So instead I tried the home and power way of entering restore and it works.

Only thing is just before the restore starts itunes 7.6 says it needs to verify the iphone with apples server before it will continue with the process.

I don't remember this happening with itunes 7.5

I’m guessing it looks at the serial number etc and if it’s not registered as contacted unlocked it mite not restore.

I’ve been lucky because this phone after restore even when the contract has been canceled still activates automatically with itunes. Guess my Serial number must be registered as OK

Anyways be carefully guys with 7.6 update I really don’t know what mite have happened if my phone wasn’t registered with apple sever.