Trying to downgrade iPhone 4 from iOS 4.2.1 to 4.1?
Alright so I’ve been trying to downgrade my iPhone firmware from 4.2.1 to 4.1 and realized that I had to access the hosts file located in cwindowssystem32drivesetc and edit it with notepad and add “74.208.105.171 gs.apple.com” to the last line. I already have the 4.1 firmware downloaded and everytime I go to restore (shift+restore) in iTunes, it extracts the software and the error message “The iPhone cannot be restored at this time because iPhone software update server could not be contacted or is currently unavailable.” I realize that this is happening because I edited that line in the hosts file. But, is there anything I can do that will allow for me to downgrade the firmware because I rely on an unlock which is not yet possible with 4.2.1
You should be using this line:
74.208.10.249 gs.apple.com
But note: Downgrading from 4.2.1 to 4.1 will NOT allow you to unlock your phone as your baseband is already upgraded to 3.1 and will not downgrade to the required 1.59. Sorry, but you’re going to have to wait until an unlock is available.
Downgrading to 4.1 will however allow you to do an untethered jailbreak but still all you’ll have is an expensive ipod until the unlock is released. The downgrade is also only possible if you have previously saved your 4.1 SHSH blobs via cydia.
I know this as I’m in the same boat as you 
How to Downgrade iPhone Firmware 4.2.1 on 3GS and iPhone 4
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