I had the same problem when i lost the phone function on my iphone so technically it was just an i lol, i restored it but i got stuck in that horrid boot logo stage where it was rendered useless for days.
Your just going to have to restore it and use a different kind of jailbreak, iv'e found 4.1 os is the best for jailbreak when you can use jailbreakme.com restore downgrade ios and use it.
You wont be sorry