I was finnally able to unlock 1.0.2 iphone about two weeks ago. I followed these steps. I have read just about all the info on this website and others about 1.0.2 unlocking. I have tried all the ways and this is the only way i could get my phone unlocked
-switched out sim card for t-mobile sim
-virgin restore (I have the 1.0.2 firmware on my computer i use to restore)
-wiNstaller to jailbreak
-PACAY to activate and fix utube
-iBrickr (pxl files)
-installed Binkit6.0 from iBrickr app. pxl files(i this part is crucial to my unlock)
-installed anySim(first release. I couldn't get newest release to work) from pxl file i saved when first released.
-ran anySim
-got the "Complete but unlock failed message" but after I clicked ok have service

If I did not have service after these steps I would start over from begining. THe second time I followed these steps it would work just about every time.

This method has worked for me a many times now. some of the problems i ran into
- I was getting the error after the 0000000 command in Putty.
- if i cut off the phone completley(not sleep mode) phone relocks
- if i take out the tmobile sim card phone relocks
- phone relocked for no reason i know exept I did not change password in Putty. THis happened twice in a 12 hour period. After I changed the password in Putty, It did not happen again. (so far)

Please let me know if this works anyone who is having problems unlocking there 1.0.2 iphone

Is there anything I can do so if i cut my phone all the way off, it will not lock? Is it possible for ATT or someone to relock your phone if you do not change the SSH password in PUtty?