After alot of messing around with my iphone to see if it wil work with *sim, I managed to get to the home screen, without jailbreaking or activating it. I can mess with all the icons and they wiggle and all. But when i connect it to itunes, it asks to activate.
Here are my steps:
1. Downgrade the 1.1.3 OTB with 1.1.1 firmware. (You have to perform this step twice)
2. jailbreak and activate
3. Install Oktoprep.
4. connect to itunes and when it asks you to update and restore, accept.
5. your iphone will restart and you should be in the home screen.
6. At this step, your iphone is not activated so you have to figure out a way to activate it.
I tried the 1.1.2 jailbreak but it is frozen at reading flash image....
Waiting for some more knowledgeable people to help me out.