IPhone 2g does not stay unlocked

I have an iPhone 2G (first iPhone) that was bought in 2007 locked to AT&T. I've recently had it unlocked by AT&T through iTunes.
The problem is, it doesn't stay unlocked.
1. With the iPhone unlocked, I was using a Meteor sim. Then I changed to an O2 sim. Immediately as I put in the O2 sim, the iPhone locked back up again and required reconnecting to iTunes to unlock again.
2. A while later I wanted to use the internet. I went to settings and saw that wifi was off. So I turned it on. The iPhone immediately locked itself back up again, requiring it be reconnected to iTunes to unlock again.
What's the story?

The jailbreak probably permanently borked it.
It is not always possible to return a jailbroken phone to a pristine state.
Sorry, but there's not much we can do to help other than to suggest attempting to restore with the phone in DFU mode.

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