There are several threads in this forum that tell you how to downgrade back to 3.0. This is not possible to do if you have a 3GS, but I'm pretty sure it works with the 2G. Here is one link for example. Just do a search of browse through the iPhone Hacks forum and you'll see plenty of answers for you. Hopefully it's not too late and you haven't killed your cousin yet.
The 2G is the easiest, because the baseband isn't updated. You just need to get the 3.0 ipsw (you might allready have it), go into DFU mode, (there are tutorials for this out there, many of them), then restore to 3.0 or 3.0.1 and jailbreak/unlock with redsn0w