OK this is what happened. I upgraded my phone to the new OS 4.2.1 , I could not jailbreak it. I was getting that annoying screen "
Emergency Calls only. I was able to open that by downgrading my os to 3.0  and running the latest version of blackra1n.exe. 

The problem was that I was not able to get the signals to make phone calls. Carrier Not Present. 

Now this is what I am trying to do. Upgrade the phone back to 4.2.1 then jailbreak it, install cidiya and then make the phone calls

The Problem now I am facing is the Iphone Itune 31194 error. It wont just let me install the 4.2.1 firmware . 

Here is the solution. 

Run Tiny Umberlla Ver v4.33.00 
Click on Start TTS Service. 
Now open C:\Windows\System32\drivers\etc\hosts file in notepad
remove all line at the bottm that doesnot have a #
or simply
all line with apple 


Restore firmware and Lo It works

To Restore Firmware . Here are the steps. 
1. Unplug the cable from Phone , Connect it to Pc. 
2. Open Itunes. 
3. Press Home Button for 5 Seconds. 
4. While pressing home button plug the cable. 
5. Keep Holding the Home Button till u get a popup in Itunes to restore 
6. Click on restore and U are good to go. :)