IPhone :: 3.1.2 Phone 3GS Blackrain Jailbreak No Longer Working

Im new to these forums so bare with me while i try to explain my problem. I created a new thread because i dont think anyone has done something as stupid as i have ... although if there is one you can redirect me to with a problem exactly like this then do that by all means

I've been running an iphone 3GS with firmware 3.1.2. jailbroken with blackrain and unlocked for quite a while now and its been working great.Although recently i jailbroke my friends ipod touch with spirit, and seeing how easy this was i decided to give it a go with my phone (i backed up before hand so if things turned sour i could just restore and reload my data).

After i tried this spirit jailbreak, the phone entered recovery mode so it obviously didnt work. But the problem now is that when i try to restore it via itunes to 3.1.2. i get an error message which is something along the lines of "The iPhone could not be restored because the device isnt eligible for the requested build".

So seeing as i couldnt restore it to factory settings this way, i tried re-jailbreaking it using blackra1n which i have used before as mentioned. However when i do this now it seems to look like its working (the guys face comes up) but when it reboots it just slips back into recovery mode and blackrain automatically tries to jailbreak it again. This cycle repeats itself indefinately.

So basically my iphone is in limbo as i can no longer restore it to factory settings due to the firmware error and i cant jailbreak it because blackrain is no longer doing it for me (ive tried re-downloading blackrain, and doing it on a different pc to no avail).