I fixed it!!!
Step one, down graded the IOs by following these steps to the letter http://www.geeksn0w.it/GeekGrade/download.html. I had to do it twice ans 5.1.1 was too far back and failed, but 6.0.2 worked great.
Step 2, activated phone through Itunes.
Step 3, did an update to current software using Itunes to get rid of the tethered boot.
Works like a beauty - except for the broken wifi, but that's another issue for another day!