It's ok, it means you have no recovery installed. You where in fastboot so we know you have the custom flash_image installed. We need to find you the custom recovery and ROM for your phone.
You will need the LG Drivers for your phone. If not already installed go here
LG Optimus T USB Drivers - LG Cell Phones Blog
You need to establish ADB in your PC's system path. Go here
New pre-packaged ADB installation
Then go here
[How-To] Root, Recovery, ROM without touching a computer - Android Forums at AndroidCentral.com
With the power off on the phone pull the sd card put it into the PC. Download the recovery mentioned and transfer it to the root of the sd card (not in any folder, just near the bottom of the list of folders). Rename the recovery: recovery.img (this is just for ease of typing it in the code).
Download this ROM:
http://optimusone-fmt.blogspot.com/2011/01/rom-ubuntdroid-rc2-optimus-t and put it on the root of the sd card. This is a good ROM to start with. put the SD card back into the phone and turn power on.
plug phone into the PC, let the drivers finish installing.
Open up a command prompt on the PC and type in (make sure you hit the enter key after each line):
cd..
cd..
cd SDK/platform-tools
adb shell (you should get a # after typing this in). If you didn't get a # type in this:
su (you should now get a #). Then type in this:
mount -o remount,rw -t yaffs2 /dev/block/mtdblock1 /system
cat /sdcard/flash_image > /system/bin/flash_image
chmod 755 /system/bin/flash_image
mv /system/etc/install-recovery.sh /system/etc/install-recovery.sh.bak
(Note: Make sure you get the spaces right. If you get an error on the line above such as "file does not exist" ignore the error and keep going).
mount -o remount,ro -t yaffs2 /dev/block/mtdblock1 /system
flash_image recovery /sdcard/recovery.img (you should have a # after typing this in. You might get a long stream of almost identical looking code, thats ok as long as you get a # after). Then type in this:
reboot recovery (it should now boot into the recovery)
From within recovery, press volume down and select Wipe. From within the wipe menu select wipe factory, when thats done wipe cache, when thats done wipe dalvik. You should be doing 3 different wipes.
Note: By wiping factory you are essentially resetting the phone. Your contacts, apps, anything and everything will be wiped off the phone.
After you wipe, you'll want to hit the back button to go back to the main menu of the recovery.
Now select flash zip from SD card. Select the ROM you downloaded then confirm the selection.
After it installs go back to your recovery menu and select "Reboot system now"
Wait 5-10 minutes for the initial install boot up.
When it boots into the ROM go to the Market app and sign in to your google account.
Reboot the phone twice. Then do as you please.