Okay so I tried using Ziphone to jailbreak and activate my 1.1.3 restored iPhone (3.9BL). My commands were as follows in the cmd on WinXP:

Code:
cd desktop
cd Ziphone
ziphone -j -a
It said DONE! and the iPhone booted but still at the activation screen. I tried many times, problem persists.

* And yes I do put the commands as the iPhone is in recovery mode.