Let me get this straight. I'm possibly thinking of downgrading so I can go back to a reliable jailbroken state. What I do is, use the 3.0 beta downgrade process steps on this site, once I'm on to 2.2.1 I restore once again using the custom firmware and I get the same error I did in 2.2.1, then I open QuickPwn and just follow the instructions?
This is how you downgrade works 100%. First you must open itunes make sure your 3g is in dfu click restore not shift or alt restore just restore. Now you have 3.0 firmware. Take Pwnnage and firmware 2.2.1 and make the custom 2.2.1 firmware. Now use pwnage to get your iphone into dfu or for more experienced do it alone. now you have a 3g with 3.0 firmware in dfu mode. Hit shift or alt to select your custom firmware and restore all is back to 2.2.1. It worked for one of my phones which was in really bad shape. You do not need to use quickpwn at all