Ok, here's what I did. I had a unlock iphone FW1.02. I updated to FW1.11. Got "an unknown error has occurred" while updating. Went into recovery mode, tried to restore to factory settings like 10 times, but still got errors. Then I did the following and it finally restored, BUT..... I'm still stuck on FW1.11, with the "Activation iPhone" screen:

When to START~~>CONTROL PANELS~~>ADD/REMOVE PROGRAMS~~>APPLE MOBILE DEVICE SUPPORT. I clicked change, then repair.

Open up itunes, hit restore, and now i'm back to "Activation iPhone" screen.


This is probably useless info, but it makes me feel semi-better that my iPhone boots up with the "Activation Screen", rather in the "Recovery Mode".

I had same problem finally figured it out.

http://www.hackint0sh.org/forum/showthread.php?t=9203