Ok so heres what is happening.
I successfully pwned my iPhone 2G when Pwnage 2.0 came out.
But i am selling that phone, so i wanted to restore it.
So i restored it to factory settings and tried to Pwn it again, but now it is stuck in the Connect to iTunes/Slide for emergency screen. But when i restart the pinapple is there.
itunes is at the register/activate screen.
what do i do.

you need to restore using apple official 2.0 firmware to remove the pwnage.

nvm i fixed it.