You need to create the custom firmware again. But this time in PwnageTool choose ADVANCED mode and uncheck ACTIVATE THIS iPHONE. Once you do that, iTunes would give you the option of activating it directly via iTunes. Your phone isn't working because it isn't activated and unlocked. Since you have the original SIM from the carrier and are locked to /that/ carrier, you should go to PT and choose advanced mode and UNCHECK 'activate the iPhone'
Are you sure you're putting your iPhone into the correct DFU mode? Correct DFU = blank screen. Are you following PwnageTool to get yourself into DFU mode? If you use PwnageTool, once you're in DFU you'll get a 'success' screen telling you that 'you're IN'
PwnageTool is meant to preserve your BB to the present state..whatever it may be..looks like you may have used TinyUmbrella to upgrade before?
To answer your question concisely, if you use the right method PT /will/ save your BB
The best for you would be to downgrade to 3.1.3 and then try re-upgrading. You can get an older original Apple firmware by googling felixburns and download the correct 3.1.3 firmware for iPhone 3G from there. Once you're downgraded to 3.1.3 and you get to the home screen, then create a new IPSW using PwnageTool and follow on screen instructions to put the phone in DFU and restore from an custom fimrware
Are you sure, you know how to put your phone in DFU mode? And what kind errors this time? What's the number?
Now of course it's too late. But I interpreted from your message above that you had successfully jailbroken with jailbreakmedotcom and then installed US. When you opened Cydia, it would have asked you to make your life easier..are you saying you chose NO?
If that's the case, then your only option is to get a Mac from a friend or get a 'cooked/custom' firmware that would ensure that the baseband is NOT updated so you can unlock.
You could download an older Apple original/stock firmware by googling felixburns and downloading from that website..make sure it's the older version below 4.0
Dev team wouldn't distribute the official Apple firmware. I don't see it listed in their bittorent. Try googling felixburns and download it from there.
In that case, try an older firmware like 4.0 or 3.1.3 ORIGINAL Apple firmware first and get your phone working again. Then, go back to trying to restore to 4.1 CUSTOM firmware.