to supposedly get by the activation. Jailbroke using jailbreak me, unlocked using ultrasnow.
And the phone is up and running, itunes sees it no problem.
But when I put in my SIM from the other carrier, it jumps right back to the screen with the disk and usb cable and says the sim is invalid and that I need to connect to itunes. of course I do that and when it then comes up, itunes says the sim is invalid. (but is is working in my other unlocked phone).
What baseband does your phone have??? Check in settings>general>about>Modem Firmware.
I'm guessing you upgraded to 4.1 and then restored back to 4.0.1? If so then you need to downgrade your baseband too. I'm no expert on that so you should wait for other replies or research fuzzyband.