Cydia acting very strange on newly jailbroken 3g with 3.1.2

[yunalesca222]

My cousin just got an 8gb iPhone 3g (NOT 3GS). She wanted me to jailbreak it so I downloaded the latest version of pwnage tool, 3.1.4, which is supposed to jailbreak the 3.1.2 firmware. Everything worked--it created the custom firmware and everything and jailbreaking was successful in iTunes.

HOWEVER, when I went into Cydia none of the packages/sources loaded and I kept getting countless errors every time I tried to download a package or install the Hackulo repository. Mainly iSpazio wasn't working and when I tried to upgrade the iSpazio source it said something like <Safe or Unsafe> and I clicked unsafe and it made the phone go crazy and reboot and then I had to do a hard reboot and restore from scratch. I tried again 3 times and same result each time--I'm not understanding why Cydia is not working properly. The application loads but nothing works its just errors all over.
Also, on pwnage tool 3.1.4 it has an option for iPhone, iPod Touch and iPhone 3G(S) but no just plain iPhone 3G option--do you think this could be part of the problem? Sorry it anything is unclear. I hope someone can help.

[Bill The Butcher]

Yep I had this problem as well. Seems mine was solved by re-jailbreaking the phone with a correct firmware - I found the one I'm on in iphoneheat.com.