1. Plug the phone into the cable.
2. Open iTunes.
3. Press and hold the power and home buttons.
4. When you see the Apple logo release the power button.
5. Continue holding the home button until you see a pop up message in iTunes telling you an iPhone has been discovered in recovery mode and needs to be restored.
6. Choose the restore to factory defaults option.
7. Once it's been restored DO NOT SET IT UP, DO NOT RESTORE FROM BACK UP. DO NOTHING.
8. Now run Quickpawn and Jailbreak.
9. Once the phone is Jailbroken go back to iTunes.
10. Choose the set up as new phone option.
11. Let the phone sync and then go into the phone and reconfigure your settings.
Follow these directions as I've written them and everything shall be restored.