I had a problem with a iphone some one attempted to unlock. I did not know what method he used so I tried Touchfree, that did not work, I tried ibrick, that did not work.
Did a restore to 1.0.2 than tried Touchfree which put the iphone in a program/ memory dumb loop.

Everytime I turned it on it would go into terminal mode and attempt to run some code where is would get to one point and loop the last command. Tried putting it in brick mode that did not work. I could not get past this point. Tried bricking the phone where it said connect to itunes and restoring it. I could not restore the phone, tried several time with 1.0.2 and 1.1.1.

What I did was turn the phone on while holding down the home key. Once the apple logo appeared I kept holding them until the connect to itunes appeared. I released the home key but kept holding the on button, went into itunes and did a restore. I kept the holding the on botton until the restore completed.

Result: phone was restored and I was able to unlock using Touchfree. I don't know if this did a complete restore because i no longer have the phone, but this could help someone.