I have an Iphone 3G. I am living in South Africa and had purchased my phone in the US, so I had it unlocked. Somehow it became frozen and I couldn't get it do anything so I tried to restore it to 3.1.2.
I went to download it, but it was saying it would take 65 minutes (the internet here is pretty crappy,) so I went to an Apple Store, just to get the Iphone restore ipsw. They gave me 3.1.2 so I don't know how I upgraded my baseband, but I did. It is now 05.12.01. As much as that sucks it is not my main problem. I know that I cannot downgrade or unlock at this point and have to wait patiently until some genius releases an unlock.
When I restored, I didn't know I had upgraded my baseband, and when it was done I jailbroke with blackra1n. When it was finished it was jailbroken, but I had no service. It would sometimes show one bar and sometimes show nothing, but there has not been any service carrier logo/was never able to make/receive calls.
I thought maybe it had something to do with the jailbrake, so I tried to restore again and not jailbrake, just so I could use my AT&T sim card. When I tried to restore again I got error 1015 and then it goes back into restore mode. The only way I've seen to get out is to jailbrake again (I've tried blackra1n and redsn0w) and I come back to the same no service problem.
I feel like I have rambled excessively, but I wanted you to have all the info available.
put into DFU mode and restore. you can try takeing the SIM card out and put back in i find i have to do that every ounce and a while, also try refreashing network settings