Here's how I personally downgraded, and other people confirmed that it worked for them also:
"Okay I did it. For those wondering, follow this tutorial,
http://iphone.unlock.no/#how-to-down...1.1.2-or-1.1.3
works for 1.1.4. Basically with 1.1.4 installed, boot it in Recovery mode with ZiPhone. Shift-Restore in iTunes the 1.1.3 FW. You get the 1015 error. Run AppTapp (Choose whatever firmware doesn't matter). You get an error but now you can access the activation screen. Use ZiPhone to Unlock/Jailbreak/Activate."
In your case you Shift-Restore the FW1.1.1. I believe. If there's something you don't understand in my post, visit the link I'm pointing to, it's mandatory and it should help clear things. Be sure to update us!
EDIT: Maybe you won't be able to downgrade to 1.1.1, so do it to 1.1.3 and then go from here:
http://iphone.unlock.no/#how-to-down...1.1.2-or-1.1.3
But anyway, it's a long and tiring process to downgrade a 1.1.4 phone, when you shouldn't even do it, unless you really have to.
EDIT2: I just realized I linked you to the same ******* link lol. Well just try with 1.1.1 if you really have to and report back.
