i did the itunes update first (to 2.0) then ran the pwnage tool. then option+click to select the custom file. I think that was the right order....anyway, I tried again and again but the same thing happened each time. Is there any fellow geekzoners who would care to offer their skills? i'll pay postage both ways to have someone do this for me. i almost cried at 1:45 this morning after I finally gave up :(
btw I had my sim in the whole time. Would that have caused any issues?