My steps to preparing phonedmg for a PC:
Create a directory called “phonedmg” at the root of C: drive.
Get the 1.0 release of iPhone software. You will need to get this from a download and you get a link to this file here:
http://www.modmyi.com/wiki/index.php/Windows_iphone_modding_101 This is a big file, 10MB+. You will need to change this files name to have an extension of “.zip”. Then extract the file into c:\phonedmg directory.
You will need to place the latest updates also into this directory and these should reside on your computer. Currently at this writing there is only one. You can find this update on your computer here:
%USERPROFILE%\Application Data\Apple Computer\iTunes\iPhone Software Updates
You will need to change this files name to have an extension of “.zip”. Then extract this file into the c:\phonedmg directory.
Download jailbreak, at least version 1.1. You can get a link to this found in step 2. Extract this into the c:\phonedmg directory.
Download Manzana. You can find a link here:
Extract these files into the c:\phonedmg directory
Find the file iTunesMobileDevice.DLL on your computer and copy it into the directory c:\phonedmg. You can get a link to it in step 2 if you can not find it.
This is a complete working directory for modding your iPhone. IF you wish to mod more than one iPhone you need to make an new one of these steps 1-6 for each phone to mod.