Thanks lookatthemonkeys.
Also I have been looking for an easy way to get 2.1 pwned fw since I am using windows and thanks to ncontorno in this thread
http://digg.com/apple/iPhone_iPod_2_...tools_released I found it. Worked for me perfectly. I didn't follow the directions I chose custom 3g and yes to contract carrier and the rest was great!!
Quoted from ncontorno's post in the above thread.
"I was able to install 2.1 in my 2G iPhone in Windows. I've listed my steps below. This is not guaranteed to work for you and I take no responsibility if you screw up your phone, so use at your own risk!
Download iTunes 7.7
Download iTunes 8.0
Download BootLoader 3.9 and 4.6
http://rapidshare.com/files/145489032/BaseB.zip
Download WinPwn 2.5 Beta 2
http://rapidshare.com/files/145490751/winpwn-2.5-B ...
Download standard firmware 2.0.2
http://appldnld.apple.com.edgesuite.net/content.in ...
Download custom firmware 2.1
http://www.iphone-hacks.com/downloads/file/148
Install iTunes 7.7
Install WinPwn 2.5 Beta 2
Run WinPwn in Expert mode.
Select 2.0.2 Firmware
Yes to unlock
Yes to delete BootNeuter
Yes to activation and YouTube activation
Yes to Cydia and Installer
No to resize partition
No to wipe data
Custom logos is up to you
It will build the custom ipsw file for the 2.0.2 firmware.
Follow the instructions to prepare the iPhone for the restore.
Once WinPwn tells you to do the restore in iTunes, boot up iTunes.
You should still be in DFU mode, so shift click on restore.
Select the CUSTOM 2.1 firmware you downloaded in the begining.
Once the restore is complete, iTunes will not be able to recognize it since 2.1 was built for iTunes 8.0
Install iTunes 8.0
Set up phone as new or restore from a previous backup."