I installed it initially with my sim card in...but after reading on here that that might be the issue, i tried installing w no sim card...yet still no service.
I know your problem, since you have a factory unlocked, the custom firmware you used to restore hactivates, so in order to get service, it must not be hactivated because you have the factory unlock. If you don't want to restore to another custom firmware which does not hactivate.
You can install Ultrasn0w to get service OR
You can restore to stock 4.1 ipsw and then jailbreak with Redsn0w 0.9.6b1 for Mac.