stuck on downloading jailbreak data

I am trying to jailbreak and unlock a new iPhone 3G running 3.0 because it will not work just popping in a pay as you go sim from AT&T. SO, using redsn0w, I have tried multiple times to jailbreak but it always gets stuck at the very end-the redsn0w program says 'finished' or 'done' , but then the phone says, 'downloading jailbreak data' forever and ever. Nothing happens and Cydia is not on the phone.

I have only done this once before on an iPod Touch, so I wondering if I am doing something wrong.

I downloaded the IPSW from multiple websites(iPhone1,2_3.0_7A341_Restore.ipsw) and it loaded fine in redsn0w from my desktop. Was I supposed to load this from iTunes instead? Or am I supposed to 'restore' in iTunes the 3.0 firmware first? Even though it is already on my iPhone?

Any help very appreciated!

Ps I am sorry if this ends up double posted. I swear I posted this but it didn't show up!