Machan did you follow my steps to restore iSO? If you did it is already jailbroken. Just check whether you have Cydia application available on your phone. If it's the case your phone is jailbroken, but not unlocked.
To unlock follow the following steps:
launch cydia, then go to manage>souces>edit>add. Then type the following:
http://repo666.ultrasn0w.com. After adding the source you have to install it.
After install completes, phone will be rebooted.
Insert the SIM. Put it on airplane mode. Again put it on normal mode. You should be able see your network provider's name and signal bars. Your phone is UNLOCKED.
If you encounter any problem while doing above, just let me know. I'll help you.
Cheers!