How can I update to FW 3.0.1 from 2.2.1 now that iTunes has FW 3.1? Is there a way to go around iTunes or use the old 3.0.1 with iTunes? The phone is a 2g.
Download 3.0.1 ipsw from MMi's downloads section. Hit shift(option for mac)+restore and restore to 3.0.1. Run redsn0w, point at 3.0 ipsw (download if you haven't already) to jailbreak it. iTunes version shouldn't matter.
I am not sure how to do that without itunes, how do you install the file , plug into the usb then? I know how to jailbreak and unlock after the FW is installed but I had done it with itunes and just clicked the button, how do I load up the 3.0.1 from the computer?
I don't understand your question. You need to download the firmware from the downloads section here on mmi and then use iTunes to upgrade to 3.0.1 by restore. You use the firmware you just downloaded by hitting shift+restore in iTunes which allows you to search and use the firmware you downloaded from mmi.