In order for iFuntastic to read and write to the device, something called AFC2 service needs to be enabled.
Some tools (notably ZiPhone) do not do this as part of jailbreaking.
You can either restore the device and use another jailbreaking solution, or you can unshackle manually.
If you have a WiFi or EDGE connection, and Installer is present on the device, then do the following:

- make sure you have an active WiFi or EDGE connection
- start Installer.app
- tap on the Sources tab, then tap on Edit then on Add
- enter the source i.unlock.no
- tap OK, then Done
- tap on the Install tab
- scroll down to Unlocking Tools and tap on it
- install Ziphone iBrickr Fix
- restart the device:
  Manually:
  hold Sleep/Wake until 'slide to power off' appears, do that, then start it up again
  Automatically:
  click the 'Restart' button below. This requires the 1.0.2 firmware, which, if not found, will be downloaded (91MB.)
  The firmware is also needed for exiting and entering recovery and DFU modes, so you you might as well go ahead and download it.
- iFuntastic will return to the Welcome page when it detects any changes in the device status