I aquired a 1st generation iphone from a friend. It was unlocked and everything was working fine. I had it plugged into itunes and i accidently restored it, not knowing what would happen. It ended up locking me out. It shows the itunes and usb plug and I have no access to the applications. I have a computer hacker type friend who used some program to unlock it last night. He said it is unlocked now (my tmobile card works and I can receive calls but not make them)but that I need to get it re-activated. He said to take it to a tmobile store and they will do it for free for me. I'd rather just get some advice here and possibly download some of the programs I am hearing about (Quickpwn). Any help!!?? thanks

What did you restore it to?
What did your friend use to unlock it and what FW do you have now?

So many questions but I bet you are on 2.x FW now!
Try and install 'Boss Prefs' application to your iphone, tap 'more' and press 'Fix User Dir Permissions' and you are good to go.

Lastly, don't pay a cent to unlock iphone, all prognosis and diagnosis are on this forum and don't give it to anybody to sort out, trust me you can do it.

I just did the same thing last night but i dont have a hacker friend to unlock it so now it just tries to make an emergency call if i try to open it to the home page. PLEASE HELP

If you're running an iPhone 2G there isn't too much to worry about -- that phone has been compromised on a hardware level so you really can't do anything permanent to impact your ability to use the phone. Here's what you should do:

1) Upgrade your phone to 3.1.2 or 3.1.3 (stock FW is OK, BB on 2G hasn't been updated in a long time.)
2) Follow the instructions here to jailbreak and unlock. Make sure to ensure that you hacktivate (tell it you will be using the device with a non AT&T SIM if asked).

iClarified - iPhone - How to Unlock/Jailbreak Your iPhone 2G on OS 3.0.x Using RedSn0w (Windows)
iClarified - iPhone - How to Unlock/Jailbreak Your iPhone 2G on OS 3.1.3 Using RedSn0w (Mac)

3) Tada! You've now got a jailbroken and unlocked device -- your SIM should be fine in it.

NOTE: I'm aware the guide is for the 3.0.x firmware, but you can safely follow the instructions with the latest version of redsn0w on 3.1.2 or 3.1.3 and achieve a successful jailbreak and unlock. You'll need a newer version of iTunes than it mentions, though.