What probably happened is that yours is indeed unlocked phone but the cellphone company only allows phones that have been preregistered to work on their network. Korea is the same way. I had a hacked unlocked phone; I could pick up the network, but I couldn't use it. You might have to register your IMEI in order to get it approved to work with their network. I know in Korea it is = 500 USD. It might be free there, but that is what it sounds like to me.
I know someone who has a 3G on 3.1.2 and wants to update to 3.1.3. Is it possible to do? I do not know if they have any shsh saved.
There is no such software as of yet that will software unlock your device. Apple just recently started to sell Iphone 4's factory unlocked, so best bet is to sell it or look for grevey sim to solve your issue.
Someone I know has an Iphone 3G and is on 3.1.2. Is it possible for me to update them to 3.1.3 or do they need the sh file saved on tiny umbrella?
There is another way, but it kind of tips on the side of illegal from what I heard.
Open your host files and delete the gs.apple.com
If your phone when you received it had cydia on it, chances are it is best that you do not update because it is unlocked with ultrasnow.
go into terminal and modify your hosts file in /etc directory. Delete the gs.apple.com or put a # in front to get rid of the error ^^
Use H2o wireless and install tetherme you will be able to edit the cellular data tab which you can use their data and picture messaging
I just told you that. The dev team is working on a way to downgrade the baseband, but that takes a back seat to i4 unlock, from what I have read.