I ended up erasing the laptop's HD and then upgraded to 10.6. So far haven't had any issues, although I'd love if someone could tell me how to stop iTunes from opening up everytime I plug my phone in to charge. Tried both iTunes, system and user (although I'm the only one) preferences. Thanks!
I have discovered that my problem was not with not being able to unlock it, but that the Bell network only supports 3G GSM networks or higher. They didn't create one for the 2G, therefore my iphone 2G will never be able to work with my carrier. Only solution is to beef it up as much as I can, sell it to someone who goes with a carrier that support 2G, and get myself a 3G (or maybe an iphone 4 will fall into my lap). Anyhow, thank you for all your help and suggestions. And if anyone knows how to trick a 2G phone into working on a 3G network, I'm all ears. :)