i suggest u to install latest version of xWinPwn or WinPwn. u can create your own custom IPSW file. no need to depend on custom firmware on the net. at least u can rest assure that u r doing it the right way.

for step 2 & 3: u can follow another way. use winpwn to pwn your iPhone and customise fw1.1.4, and make sure u select BootNeuter. the steps mentioned on the article is for an iPhone that's curently running 1.1.4 but previously not unlocked using winpwn / pwnage, thus needing u to install BootNeuter manually from Installer.
and then, use the custom 1.1.4 firmware through iTunes, and after it's successfully restored and unlocked, u can put the iPhone to normal restore mode using iLiberty or ZiPhone, and then u can proceed to restore the custom 2.0 firmware.

some people claim that they need to put the iPhone to DFU mode, as normal sleep mode doesn't work. but emember though by doing this, u can't easily kick the normal mode back, especially on iTunes 7.7.

mmm...another thing, u need to use iTunes below version 7.7 if u wanna install back firmware 1.1.4. and u can also install custom 2.0 on iTunes 7.6.2 that has been downgrade from 7.6.2 (as i've tested) but u only can't access the iPhone, until u upgraded to 7.7.

This post has been edited by LaskarCinta: Jul 26 2008, 12:26 AM

btw the guide of reinstalling iTunes is too long (plu it's for both OSX and Windows). most likely he's using windows (as he mention winpwn), so he just need to :

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Added on July 26, 2008, 6:26 amoppss silly me i forgot. why not just restore to stock 2.0 and proceed with pwning step? it should work right?
btw WinPwn 2.0.0.3 is released with bug fixes.

This post has been edited by LaskarCinta: Jul 26 2008, 06:28 AM