So far this method has not worked for me at all in any of the various permutations that people have posted....earlier I tried even just restoring to stock iOS 4.3.5 and it still went into recovery loops...Now, though, it has successfully restored to 4.3.5.
I was on 4.3.3, jailbroken, and I wanted to do a full restore and start over because I had terrible lag and it pissed me off, lol. So, I tried to use some methods found online to restore to 4.3.3 not 4.3.5. But nothing worked, and I read somewhere that you have to upgrade to 4.3.5 then downgrade to whatever it is that you want. Sooo I tried restoring to 4.3.5, as mentioned above.
Now that it's running 4.3.5 I'm going to try downgrading to 4.3.3...wish me luck.
The main problem I had with this method was the same as a few people mentioned several pages back: after using redsnow, my phone never got to the spinning and/or the pineapple logo...in fact, during all the text that normally scrolls down the screen during jailbreak, I'm pretty sure that something went wrong during that process, because the text didn't look the same as I had remembered from previous jailbreaking experience. And after a relatively short time during the text, the phone just reboots and goes back to the recovery logo, and TU won't pull it out. Aarrghghh!