In bad need of HELP!

[aeroport]

Tried upgrading to 3.0/3.1.2

First I followed directions via Pwnage then as soon as I connected to itunes, after the full firmware restore, it told me I have an invalid SIM and I need to replace it with a valid SIM.
This iphone is from US. I no longer live in US. I have signed new contract with legit local provider who supports iPhone (Vodafone).

I also tried re-unlocking steps via red snow. But, as soon as I am prompted to hold the home and power buttons, and the countdown begins, I am left holding the home button and the screen simply says "wating for re-boot" and nothing ever happens! I have also tried releasing the button.

The only way I take the phone out of Disk mode (or this dead mode) is by reconnecting it to iTunes. Now, it seems there is a new version 3.1.2? I am scared I will forever lock the phone. Someone PLEASE help. I am going mad!

[blkcadi]

Redsn0w doesn't do the unlock, ultrasn0w does.
Try running redsn0w again and then add the ultrsn0w repo in Cydia.

[cpjr]

The phone is still considered an ATT phone, so it will have to be unlocked. What FW version have you loaded?

EDIT: Beat by a skirt

[JAG2621]

With the pwnage tool does it give you the option to activate?

[aeroport]

Thanks to both of you!!
Please explain (I'm a newbie, unfortunately) FW, means?

Where do I find Ultrasnow and how do I proceed about loading it onto iphone and then, what is the next step, pls!

Right now phone is in DF mode (like dead).
The only way I can wake it up is connecting it to itunes which prompts me to "restore" to the latest version!Scary!

I don't believe that it gave me the option. Only asked for me to locate the IPSW file that I had downloaded earlier...maybe that is what you mean?
Sorry i am under shock from locking this phone! Can't remember what happened this morning!

[blkcadi]

Put the phone in DFU mode as explained in redsn0w process. It will tell you to turn the phone off and then follow the on screen prompts.
After the phone is jailbroken you open Cydia and add this repo source repo666.ultrasn0w.com/
If you are rimming 3.0.1 OS you will need the 3.0 restore .ipsw for redsnow to do the jailbreak.
Here in a link to redsn0w and here is a link for the 3.0 .ipsw file if you need that also.