Yesterday I took the plunge and upgraded my 1st generation iPhone to 2.0.2. I've been anxious to start exploring all the great iPhone Apps out there. First off, you want to make sure you're using 126.96.36.199 of the Pwnage Tool. I got mine off of BitTorrent. Make sure you check the sha1 hash for the file. You don't want to run a program that masqerading to be pwnage tool. Wouldn't want your Mac to be pwned by someone else.
To check that you have a legit version, you can run openssl dgst like this.
$ openssl dgst -sha1 Pw*Make sure the hash is a3faf5c074d5556a40ce4c7678a51995b5767073. If it's not, then you may have a hacked or corrupted version. Generally it's not a good idea to run anything you download form Bit Torrent.
After going through the pwnage process, everything seemed fine. I was able to download the Pandora and Truveo apps, which are very cool. Unfortunately I was not able to get the email app to run at all. After hearing all the bad press on MobileMe, I thought maybe this was the problem. Turns out it's not.
I found the solution on this post. The combination of pwnage and restoring messes with the file permissions. Luckily, BossPrefs, another great app, has a button to fix this. After running BossPrefs, email is working fine.