Download tiny umbrella, run it , plug iphone in, click save shsh.
Now close tiny umbrella.
Update itunes to the latest.
Download Snowbreeze 2.0.2 or 2.1 or Pwnage tools 4.1.2 for Mac. Download the stock 4.1 firmware.
Build your custom firmware of 4.1, use Expert mode, uncheck activate my iphone.
Once created, it will be on your desktop.
Run itunes > shift + restore to custom firmware of 4.1 ipsw
Once restored, if you leave your official sim in there, you will now be at HomeScreen and jailbroken at 4.1
If you need to unlock, then install Ultrasn0w from Cydia.
You are done.
If you are unchecking activate phone when making the custom firmware then yes you will need a official carrier sim to activate the phone after the restore.
Since I don't have access to the official carrier SIM. Could you please advise me on a work around.
While Building the custom firmware of 4.1 and using Expert mode, Instead of unchecking activate my iphone, If I check the activate my iphone option.. will it work?
Ya the mmi one is the regular one. Thats the one you use in snowbreeze. The other one was a custom one already made. I just removed the link from your post since we cant post links to custom firmware here.