I just bought a used iPhone 2G from ebay that was stuck in recovery mode. I put the phone in DFU mode and restored it to factory settings with iTunes (3.1.3 FW). Then I jailbroke and unlocked the phone with redsn0w 0.9.3. Everything looked good until I tried the WiFi. It will not detect my router but my personal iPhone picks it right up. So I then restore the phone back to factory settings again but this time I use FW 3.1.2. I unlock it only this time and still nothing. I contact the seller on ebay to find out if he had any problems with WiFi before he tried jailbreaking it and he said noe, the WiFI worked just fine.

Since the phone was unlocked prior to me getting it and then I unlocked it again, did I mess up the baseband?

The phone gets a WiFi address and a bluetooth address so that's why I don't think its hardware failure.....