Really? What was the error?

Got it working. I followed the instructions and got stuck with error 1015.

I had to do two things.

1. Switch of your iPhone and put it in DFU mode with following instructions - Click the Home + Power On button for 10 seconds exactly - Release the power button and continue to click on Home

2. Restore and it fails with Error 1015.

3. Run iRecovery -s followed by fsboot, following http://www.ihackintosh.com/2009/09/recover-iphone-3gs-from-a...

I am back with 3.3.1 Thanks a lot guys.