When it says it is not compatible, then that means you downloaded the wrong file. You cannot restore a firmware 3.1.3 for iPhone 3GS on an iPhone 3G or on a iPod Touch or on an iPad or vice versa. Make sure you download the correct version for your hardware. You find all downloads in the sticky of this forum.
Simple is that
Connect Your iphone with itunes Just Update after update insert simcard n reconnect iphone n see.
Your Iphone Unlocked if was factory Unlock.If not unlock than that is not Factory Unlock.....!
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