So I got a 32GB iPhone 3GS last night, came home and Jailbroke and Unlocked it using the method that preserves your Baseband and following the next guide after the first so I know I did everything right.
It IS AFTER week 35, and Redsn0w gave me a message before unlocking but it said it will still run fine.
All my Jailbroken apps are working fine and the ISM shows no errors and it knows that one is inserted.

my iPhone was on 4.3.4 before I did this.
I then inserted a brand new T-Mobile SIM in and activated it, it said I would get a text message. I have No Service though, anywhere but when I put the sim in my old phone, it works fine!
My current info is as follows:
FW Version: 5.0.1 (Custom)
Modem Version (Baseband) 5.16.02 and my iPhone is a week 48.
I did notice that there is no Setting for "Carrier" in my phone, but when I disable WiFi it shows up in the main area, but under General still says none.
I have tried restarting my phone, Airplane mode, 3G has been off.

Your baseband cannot be unlocked and your phone cannot be upgraded to the iPad baseband. There is no known way to unlock the device you have at this time. Sorry to be the bearer of bad news.