Ok I restored and updated to 4.2.1. I downloaded and jailbroke using greenpoison. It finished jailbreaking but its stuck on the screen where it wants me to to plug it up to iTunes.Plug it into iTunes and restore it, it will restore to the highest firmware available for a 2nd gen (4.2.1) then after that download greenpoisen and jailbreak!
Well I unplugged it from the computer and was going to plug it back in to see what happened. It started rebooting then bingo. Somehow I got lucky I guess cause right now everything seems to be working fine.First try kicking it out of recovery mode with the fix recovery feature in TinyUmbrella. If that doesn't work, try running limera1n (while still in recovery mode) to jailbreak. If that fails, hit the restore button in iTunes and then run limera1n.