Thank you a million times to all, for prompt reply to my questions. Later, after posting them, I was playing with my iPhone and discovered that using iTunes was simple... Shame on me... I was just too impatient, after long time having it without being able to use it in any way. Also, I hesitated to experiment with the device, not wanting to disable it anymore.

@tbv I am in Europe. Sadly, I can't do what you said.

Have a wonderful time guys, you are best.

Kindest regards

Hi nice people,

I received an already jailbroken unlocked iPhone 3G as a gift, just two days after Apple has released the newest iOS 4.2.1. I didn't even dreamed of any iPhone, so I was a full ignorant in that matter. It was late night when I got it, so I ran to enter my contacts from the other phone using bluetooth... Of course, every average iPhone user knows the limitations of bluetooth in it. I thought it was some malfunction and went directly to Apple's official site, instantly uploading the new iOS hoping that will fix the problem.... But instead, it got locked forever. Needn't to say, I don't have SHSH blobs saved (I have learned those things later). I took it to a service tomorrow , but workers there could do nothing.
That point was where my nightmare started...

Since then, I followed all the news Dev Team published and read a mountain of other information wanting to bring my device into life. Finally, two days ago, I have it jailbroken using latest redsn0w 0.9.6rc8 and now I can see icons at least. As its baseband is 5.15.00 I can't unlock it yet, because I want to stay away from iPads BB.

For you who has survived my intro (I apologize for making it too long) I have a question:

May I use my iPhone as iPod while I am waiting for some better unlock?
How to do that?
Should I upload music using iTunes, or there is a better solution?

Immensely grateful in advance