@BLjack

Ouchhh....a very big ouch. Sorry my friend, you should have read the first post before you upgrade. Read below:

Locked iPhone 3G - Preserve Baseband
This applies if you have a locked iPhone 3G and you wish to update to 2.2 but preserve the iPhone’s current baseband software. Preserving the baseband will give you the maximum chance for any upcoming software unlock. Upgrading using iTunes can forever eliminate your chances of ever unlocking you iPhone 3G.
To upgrade your phone to 2.2 and preserve the state of the baseband you need to create a custom .ipsw with PwnageTool. This custom .ipsw will not contain the baseband update but of course will still allow all the cool new stuff from 2.2. There are plenty of tutorials about this process on the web, but PwnageTool contains intuitive graphics and easy to follow prompts that should have you up and running in no time at all. Please note: PwnageTool is only available for Mac OS X.
*If you're using Turbosim etc and would like to upgrade your firmware to 2.2, Pwnagetool will be the only software used to upgrade your firmware. Upgrading via iTunes and using Quickpwn will render your turbosim useless thus eliminating your chances of ever unlocking your iPhone 3G with software unlock.

I guess you're out of lucky until a proper hardware unlock simcard comes about. For now, you'll will have an very expensive ipod touch.