I don't think that's what they said it could do. I think it is more along the lines of remotely wiping all of your sensitive data such as contacts and email from your phone. Plus I think that is for Enterprise users only (aka through business)
I lost my phone in a taxi and it is now 'power off' so now stolen (too soon for the battery). I heard ver 2.0 could be used to render the phone inoperable in just such a situation (especially important for business users), so my question is how? My phone is registered to my home computer and it's an original iphone unlocked via pwnage as I now live in China.
Sorry you are out of luck since you hacked the iPhone. We cannot support hacked products. Anyway the only thing that remote wipe is for is the exchange functionality. The best you can do is get your carrier to disable your SIM. No guarantee though since you hacked your phone.