The first step is to get rid of that file and try another. Did you get the file from below (STEP #6)
http://forum.ppcgeeks.com/showthread.php?t=36062
Thats the file I used and I had now issues. If you did get it from Tobey's post, I would try another computer
I have attached the Diamond Unlocker file that I used below. Take the Zip off the end, it's a RAR file.
Attachment 18563