hey, here we go.

put the phone in dfu mode.
download 1.1.1 ipsw.
in itunes "shift" click restore.
select 1.1.1 firmware u just downloaded.
let it restore.
when it does that, turn on the phone.
back at the activation screen!!
slide for emergency.
type *#307#, hit the call button.
phone should start ringing.
clear the *#307# and just press the zero button, then call.
phone rings again. answer.
press hold.
phone rings again. hit decline.
you should be in the contacts menu now.
add a new contact, i.e. prefs://lf
save, open contact, click on the link, general settings opens up!
connect to your wifi router!
hit the home key.
go back into emergency screen, hit 0 and call.
phone starts ringing. answer, click hold.
add a new contact, i.e. http://jailbreakme.com.
hit save, whatever. then open up the contact, click on the web address.
safari opens, browse to the bottom of the page.
click "install appsnapp"
give it a second. phone should restart.
congratulations, you're now jailbroken and activated, also got installer.app installed!!
now, go to the nearest pub and congratulate yourself with a pint