Hey, I tried all night last night and most of today to get iphodroid installed on my iPhone 2g. I restored it in iTunes to 3.1.2, jailbroke it with redsn0w with the 3.1.2 IPSW file, and then ran iphodroid to no avail. I kept getting to the same point of loading the quad thing at the end and it would keep throwing my phone into the "plug me in to itunes please!!" mode.
I kept restoring with iTunes to 3.1.2 and trying over and over again. I finally noticed that on the site for iphodroid that he was updating the version periodically. I downloaded the latest a couple hours ago (R13m) and after going through the process above 3 times, it finally just worked. Didn't seem to be any rhyme or reason to it but I'm now successfully running android on my iPhone 2g by using my Windows 7 64bit machine.
I guess, moral of the story is, make sure you have the latest iphodroid and just keep trying from scratch over and over again and it should work. Now I just have to wait until I can use my iPhone with Android to hack my ps3 and run the backup manager!