Limera1n won’t unlock the phone, that’s not what it’s meant to do. It’s a common mistake to mix up what Jailbreaking and Unlocking is (they are VERY DIFFERENT)

Limera1n is your Jailbreak tool. You need to jailbreak in order to unlock. Limera1n will NOT unlock your iPhone. For that, you’ll need “ultrasn0w” which is conveniently hosted right there in Cydia. Simply download and install!

Apple added the new baseband 02.10.04 on their latest iOS 4.1, Unfortunately that has made the Ultrasn0w 1.1-1 not compatible with the final version. The simple attempt to downgrade back to the previous iOS version can do nothing to get your iPhone unlocked either, because that only effects the firmware, and not the baseband.

If you have an iPhone 4 and need it unlocked, there are a couple of hoops you will have to jump though. It isn’t that hard really, just an extra step here and there.

1) Download TinyUmbrella and save your 4.1 shsh to your computer. [MAC] [WINDOWS]

2)Press Start TSS server. It will shut down iTunes for you.

3)Make sure Tiny Umbrella says “Accepting TSS Connections…” in the message section

4)Reopen iTunes.

5)In the main iPhone screen in iTunes, locate the Restore button.

6)Proceed with update to iOS 4.1 from iTunes.
— You will get the “The iPhone could not be restored. An unknown error occurred (1004)” message

7) Use Tiny Umbrella (still open) and select “Kick Device Out of Recovery”
These steps should solve your issues with unlocking later. You will be able to use ultrasn0w to unlock if your baseband (modem firmware) is still 01.59.00

To see what your modem firmware is:
Settings.app > General > About > Modem Firmware (at the bottom).

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