Last week I received a phone fully functional but with the No Service problem.
After trying methodically every solution posted here with no results, I started over, looking for alternatives.
Today encouraged by the wonderfull bootneuter tool I started playing with bootloaders back and forth and finally found a solution:
Here is the step by step:
1- Restore to 1.1.4
2- if you have 3.9 bootloader use bootneuter to upgrade to 4.6, do not neuter, do not unlock and do not fakeblank.
2a- let itunes detect the phone and ignore any error, just leave it running
3- use iplus 2.0b with the -u option to unlock and downgrade to 3.9fakeblank
3a- let itunes detect the phone and ignore any error, just leave it running
4- use ziphone 3.0 to refurbish and also check in advanced options to erase 3.9 baseband
4a- let itunes detect the phone and ignore any error, just leave it running
5- use ziphone to put the iphone in DFU mode
6- Restore to 1.1.1
6a- let itunes detect the phone and ignore any error, just leave it running
7- Restore to 1.1.4
8- use iplus 2.0b with the -u option to unlock
9- Write down the IMEI engraved in the back of the iphone
10- Use ziphone 3.0 to fake the IMEI with the one you just wrote.
You should end with a working phone with firmware 1.1.4 and 3.8 Bootloader.
A- I tried to skip steps and went directly to 3.9fakeblank using bootneuter, but the phone remained with NO SERVICE after finishing
B- Also tried to go to 3.9 and 4.6 after making it work again and the phone went back to the NO SERVICE status.
C- I repeated the procedure twice (Im brave ) so I know its repeatable.
I hope this gives someone with better knowledge of the iphone innards ideas for a simpler solution to this problem.