Unknown error 1 - iTunes using Pwnage Tool 184.108.40.206
I was using my iPhone without any problems for a month, i had unlocked it using PWNAGE TOOL 2.01 and Firmware: iPhone1,1_2.0_5A347_Restore, it worked well, at the time I had some problems getting into DFU mode, but somehow I got it running by restoring with the original Firmware that was on it. Then 5 days ago i lost Internet access via GPRS on my phone, that has been FREE access ever since I unlocked it with PWN, so i decided to try restoring and use the latest PWN Tool to get FREE INTERNET again.
Now I have problems getting it running again. Im now stuck getting Error 1 every time i use iTunes 7.7 in DFU mode, iTunes starts to open the Custom firmware created by PWNAGE Tool 220.127.116.11 and stops, then always shows "Error 1".
I noticed when i let Itunes download the firmware, iTunes came up with Firmware 1.1.4 for the recovery download, even though it was running 2.0 before this. So then I downloaded iPhone1,1_1.1.4_4A102_Restore firmware and tried installing it on my phone. It seemed to work ok, but then after 3minutes of updating the firmware onto my phone it almost looked like it had completed, then ended with ERROR 1015. Now when the phone is on it just shows the Mac Logo at start up, then the Itunes logo and USB connector icon. Back to square one.
Ive tried using iTunes 7.6 and it was the same, Error 1 after attempting to install Custom 2.0 firmware, Error 1 always apears after extracting the 2.0 Firmware. I tried making other firmwares using PWNAGE tool and still same problem Error 1. Tried different USB ports, rebooting my MAC etc, created a new USER account, no luck, all the same ERROR 1.
PWNAGE TOOL even says i am in DFU mode and then iTunes 7.7 opens and I try again, same error, ERROR 1, every time!
Ive read many posts on this and everyone seems to think its either not in DFU mode correctly, or the Firmware is wrong. I'm using the same original 2.0 Firmware in PWNAGE TOOL and custom firmware its created, and tried creating other firmware, so that seems unlikely. The iPhone screen is always black in DFU mode as it should be and i am pretty sure it has been in DFU mode correctly when connected to iTunes.
How can i get my iPhone working again, and get out of this Error 1 nightmare, i have spent 4 days trying to get it running. PLEASE HELP.
P.S: System Info: Running MACBOOK PRO OSX Leopard 10.5.4
Iphone 8GB 1st Generation. ( I dont have an AT&T account, i got my phone on Ebay and have an Australian Optus pre-paid mobile SIM card which worked well before.)