Downgrade the main firmware:
- Connect the phone to the computer and launch iTunes (v7.6 NOT recommended).
- To enter recovery mode, connect the phone to the computer and press and hold the Power button (on top) and the Home button (on bottom front) simultaneously. After about 15 seconds phone will appear to turn off, release the Power button but keep holding the Home button. After about 15 seconds the computer and iTunes will detect the phone in recovery mode, and you can perform a restore. IMPORTANT: If you just click the restore button, it will restore it with the latest firmware. It's much safer to manually select firmware instead. If you want to manually select a different firmware you can hold down SHIFT key (Windows) or Option/ALT-key (Mac) when clicking the Restore button, and it will let you choose firmware file. Download the wanted firmware here (you would normally want 1.1.1).If you downgrade the firmware you will get an error when restore is complete, and phone will be stuck in recovery mode. To get it into normal mode, run AppTapInstaller.exe (or iNdependence if your're on a Mac).
- You will get an error when restore is complete, just ignore it and run AppTapInstaller.exe (to Mac users: iNdependence should do the same.
- AppTapInstaller.exe will fail, but your phone will get to the Activation Screen now!
- When on the activation screen, just follow my tutorial to jailbreak and bypass activation.