If you are using a "approved carrier" (i.e., you bought the phone with Rogers) then you do NOT want to check Activate and let iTunes activate it.
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pwnagetool was askig that I set the ihpone in restore mode and restore in itunes, but how would I get to restore mode?
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Restore Mode is the simple mode. Turn the iPhone off and then hold down the Home button while you plug it into the sync cable. That will put up the "Cable to iTunes" graphic on the phone. You don't really need this mode as you can always click the "restore" button in itunes to load a new IPSW anyway.