I have Upgraded/Unlocked/Jailbroken three 1G iPhones tonight.
a) 2.0.1 already Pwnage Unlocked/Jailbroken
b) 2.0.1 not yet Pwned at all (had information so I "Erase All Content and Settings"
c) 2.0.2 already Pwnage Unlocked/Jailbroken
You must...upgrade to 2.1 through iTunes the legit way (you will keep unlock but lose jailbreak). Then use the PwnageTool to build a Custom Firmware for each iPhone (it will 'see' the unlock and skip that and give you jailbreak). You will get an error 1600 if you attempt to Pwn/Upgrade or use another iPhone's custom firmware! Please use the applications great DFU mode helper. your screen should be black and iTunes should discover it in recovery mode. Then when it upgrades using your custom firmware it will flash white for a moment.
Here's a tip I ran into along the way:
Navigate to Users > Home Folder > Library > iTunes > Device Support
Delete the Recovery (x122220000_4_Recovery.ipsw) file in that directory without deleting the folder itself.
Can you tell me why we are deleting the recovery file?
I'm currently at iClarified. I'm about to backup my 1st gen iPhone (UL and JB) running 2.02.
Then I'm going to...
Upgrade to iTunes 8
Run Pwnage 2.1
Restore with the Pwnage 2.1 Custom file
And see what happens.
From what people here and at iClarified say, now you keep both UL and JB with this new process. Have heard AMAZING things about the new functionality and responsiveness of 2.1. Battery life is extended and crashes are limited. So, I'm biting the bullet. Worst case, I'll downgrade the phone with iTunes 7.7 and an earlier Pwnage process. Or I'll live with the Unlock only.
Best case, it's all like people have said and I'll eat my cake and have it too (that's the right way for that expression to be used, by the way).
Comment? Please post quickly before I get rolling.
Thanks,