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I'm not an unlock expert. I use the native services. Ask Simon about unlock help.
I don't know why your radio isn't picking up services. I would check with your carrier.
Tethered jailbreak with Redsn0w. Point it to iOS 5.0.
What Anthony said.
You can't because Apple stopped signing iOS 5.0. You would be forced to update to iOS 5.0.1 (which is fine because Pod2G said that the untethered jailbreak would work with iOS 5.0.1).
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