OK, here is what happened.
I had version 1.1.4 on my iphone up until last night. The when trying to uninstall some apps, the phone froze. i tried restarting, and even "do it all" with iliberty, or ziphone, but no success. Nothing worked.
Last thing that i tried i did a system restore usind ituned 8.0.2.
Now when i turn on the phone i see the TMobile signal at carrier, but the phone won't unlock. It only let me do emergency calls.
I am not sure what version i have on the phone and how to unlock it.
All i know by doing *3001#12345#* is that i have firmware 04.04.05_G.
Can anyone let me know how to proceed from here?
Also which itunes version i should use and what software do you recommend to unlock it?
Thanks

Connect it to iTunes and see what kind of info you get.

Itunes, does not recognize the sim in the iphone.
It waits a while for the iphone then..... "the iphone "iphone" cannot be used with itunes because the inbformation required for activation could not be obtained from the Iphone"....
But then again... what version of itunes should i use?

Never mind guys.. i found a way to bring the iphone to firmware 2.1 and unlocked it.
Question now is.... is it safe to upgrade to 2.2?
If so, how to do it?

Check this thread. Does the 2.2 update work with a 2G unlocked iphone?

Status changed to solved & thread closed