Hi guys, this is a quick update. I managed to pass the 1600 error.
And all I did was NOT putting iphone in to the DFU mode.
This is what I found on the web and it helped me
UPDATE!!!: You dont have to downgrade back to iTunes 7.7
I also am using a mac... I also upgraded to iTunes 8.0... I also was getting the error(1600) when trying to restore a custom pwnage firmware in DFU mode... was getting frustrated and then decided to try it while NOT in DFU mode, and guess what, it worked! Well it did for me, tell me if it does for you please
So there you have it, you do not have to enter DFU mode. Infact in my case the only way to get the custom firmware to install was to do it out of DFU... just in regular mode.
Step my step:
1) Turn on your iPhone
2) Plug it into your computer and allow iTunes to detect it as normal.
3) Now hit option/restore and select the custom firmware
thats it!
If your stuck in DFU mode and dont know how to get out, just hold the sleep and home button at the same time for about 10 seconds... then release both buttons and just hit the sleep button. The phone should power on like normal
http://www.modmyi.com/forums/iphone-news/337591-itunes-8-pwnage-error-1600-a.html