Stuck in Limbo

I have a non-3G iPhone that was unlocked. After updating iTunes to 7.7, I accidentally hit some update button in iTunes and it downloaded and installed iPhone 2.0. It became useless of course.

I tried running Pwnage 2.0.1 to no success. When trying to do the custom restore, iTunes says, `The iPhone "iPhone" could not be restored. An unknown error occurred (6).`.

When I try to re-run Pwnage, I can't get it to shut off to go into DFU mode. It keeps rebooting into Restore mode (with the iTunes logo and USB pointing to it).

I tried to use ZiPhone with it, but it can't find the iPhone even though iTunes can.

What next?