1)First off Uninstall iTunes, and all of its components, I deleted EVERYTHING that had anything to do with Apple.
2) Install iTunes 7.4 Located here
3) Download WinPwn 2.5 Beta here
Start by putting the phone into DNC Mode by doing the following steps
With the phone connected to your computer AND TURNED OFF
1) press and hold the power button (top right) for 5 seconds,
2) while still holding the power button press and hold the HOME button for 10 seconds
3)release the power button but continue to hold the home button.
You should hear your computer USB connect and disconnect a few times…iTunes 7.4 should recognize an iPhone in recovery mode, allow iTunes to restore the phone. Once that has completed your almost there. Now uninstall 7.4, and reinstall 7.1.11, once that has completed installing run WinPwn 2.5 and follow the instructions….