I had my phone unlocked for a year with the 1.02 version of the iphone software. I wanted to go to 1.14 so I decided to use Pwnage to do this.

Using Pwnage on my 1.02 would fail during the iPwner process. I would get an error -RC2 on my iphone screen as it scrolled by.

So I allowed Itunes to update my iphone to 1.14 and then redid the iPwner utility and it went thru fine.

Now when I try to go back to Itunes to Alt-restore to use the newly created custom IPSW, itunes wont allow the iphone to show up in Itunes because it says I doesnt have a valid sim.

Removing the Sim doesnt' help either. No dice.

Im using itunes version 7.6.2 (9)... is this the problem? And if so, how can I use an older version of itunes?

Thanks for any help you can give me!

Just put it in DFU/Recovery mode.
After that you'll be able to restore it to any firmware, including a pwn-firmware.

Thanks.. i figured that out myself. I thought the CONNECT TO ITUNES was recovery mode (not cartoon Jobs)

The wierd thing is... pwnage wont allow me to create the custom IPSW anymore, it fails right after asking for my admin password. It doesnt crash, just says file creation has failed.

Restart you computer and try again, but don't load an already customized ipsw in it.