Hello ! As soon as i read about H/W unlocking, I gave it a try. Unsuccessful ! I lost wifi, and even when I had vt100 terminal installed, i had a beautiful brick. I read somewhere that in order to recover WiFi, I needed to upgrade to 1.1.3; so I did. But when trying to DG to 112 or 111, "unknown error 1" appeared immediately in itunes. So I could not downgrade.
Searching, I found this video in youtube and used iPhuc and three commands. Also, in the same site of this video there is a ZIP file, which I uploaded in http://r-a-p-i-d-s-h-a-r-e.com/files...grade.zip.html (remove the -), in which there are the tools and files needed. Besides, if you don't have it, you need to dw the fw 1.1.1.
All credit goes to "ipodtouchmaster", from youtube.
Turn off iTunes, extract all files in ZIP to a folder and open iphuc.exe, then type the following:
(NOTE : after hitting "enter", you should see a "0" (ZERO); else, something is not correct)
(NOTE : the commands are CASE SENSITIVE; if you receive the error "filecopytophone", you need to start over, because you did not receive a zero in the prior step)
Exit iPhuc and open iTunes, then hold shift and click on restore.
Choose the 1.1.1 firmware from before and pray that it works.
If you see the 1015 error, use iBrickr 9 to go back to activation screen.
Go on with the TouchFree process (jailbreakme.com, OkToPrep, etc.)
Taadaaa! you are done !
See the video fully, so you can have an idea.
I had to try it twice, but now the iphone is not a brick anymore. It's working like an ipod touch, awaiting for SW unlock.
Again, thanks to ipodtouchmaster, from youtube.
BTW...I will sell my iphone, for I'm tired of this rat/mouse game. iPhone should be free to use for all.