I'm sure some of these things have been mentioned by other members but to reiterate...
Alot of you who are trying to restore to a custom IPSW in iTunes and are getting a 16XX error with your unlocked iPhone 2G probably upgraded to 3.0 before the new Pwnagetool came out today or for some reason do not have a Pwned iPhone. If you upgraded prior to the new Pwnagetool release and are getting iTunes 16XX errors when trying to restore to a custom IPSW you will need to re-Pwn. To do this:
1. You need to get out of restore mode. I suggest restoring to an unmodified 3.0 firmware. You will not lose your unlock but you will be unactivated, unjailbroken, and stuck on the emergency call screen.
2. Open Pwnagetool and click on the DFU icon. Follow the directions to put your iPhone into DFU mode.
3. Once you're in DFU mode, you can successfully option+restore to a custom 3.0 IPSW in iTunes.
Also: For those of you having trouble with weather and stocks (should be everyone), it is on the Apple/Yahoo side and has nothing to do with the jailbreak. Should be fixed eventually I'm sure.
Your trick worked with a catch. It finished jailbreaking the phone, but now I can't connect to AT&T's network. Kind of sucks having it jailbroken but unable to make or receive any phone calls. Any suggestions??