After releasing Sn0wbreeze 2.0.1 to fix iTunes error 37, iH8sn0w has just released Sn0wbreeze 2.0.2 to take care of few bugs in version 2.0.1 causing iTunes to send error 40 / 17 while restoring iOS 4.1 custom IPSW file.
Errors 40 / 17 are associated with iPhone Hacktivation. iTunes, for some reasons send these errors if "Hacktivate iPhone" option is used in Sn0wbreeze 2.0.1. Hacktivation is a process of activating an iPhone with a non-official SIM.
Sn0wbreeze 2.0.2 is available for download (link mentioned below). After downloading simply follow the procedure given here for iPhone 2G, 3G & 3GS (Old + New Bootrom) and here for iPod Touch 1G, 2G (MC + non-MC) & 3G to jailbreak on iOS 4.1.
Don't forget Sn0wbreeze 2.0 is not compatible with iPhone 4, iPod Touch 4G and iPad. iPhone Dev-Team and Chronic Dev-Team members are already working hard to jailbreak these 4G devices on iOS 4.1. A new tool based upon SHAtter exploit named GreenPoisi0n is expected to be unveiled soon. Stay tuned for more updates.