I think I may have accidentally flashed the newest Baseband :(
My modem firmware is listed as 05.11.07, however I'm running on a jailbroken 3.0 ipsw which was pwned. Apparently this baseband causes many errors when attempting to do restores as well, ever since I got it, ive been seeing 1015 errors from Itunes all the time.
It would also cause Redsn0w to hang when going through the "Installing Activation Bundles" step. I dont know how i got myself into such a predicament but thanks to Pwnage at least I was able to get it back to a jailbroken 3.0 state allowing for Cydia and Icy.
As warned Ultrasn0w does not work with this baseband, I get no reception after installing it so I guess all I can do is cross my fingers and wait for the dev team to come to the rescue....unless you guys have some helpful suggestions...are there any ways to reset or erase the baseband??
Installing Activation Bundles
I'd be inclined to try being patient - on my iPhone 3G, it sat with the Installing Activation Bundles messages for around 8 minutes before continuing successfully.