HI i have jailbroken Iphone 4 running Version 4.0(8A293), I have not updated the phone since I jailbroke with Jailbreakme*com . So I wanted to find out what is your guys idea on upgrading version? I think its about time but to start off I am not familiar with how to do this while keeping my phone jailbroken so if someone can tell me what I should do and with detail how do I do it. I would prefer not to loose any info or apps that i have bought from cydia so please someone help me.
Whatever you bought from cydia , u can always install back.
You can restore to 4.2.1 and jailbreak it with Greenpoison if software unlock is not needed. Hete is the website : GreenPois0n
If you want to be able to use your phone on other carriers (that's what the unlock is for - might as well, better resell value if nothing else) than I would download the latest version of either snowbreeze (windows)/pwnage tool(OSX) and the firmware 4.2.1 and make a custom firmware that does not update the baseband. If you use snowbreeze your gonna also have to jailbreak with greenpois0n after the update, pwnage tool custom firmware is already jailbroken. This route is a little more time intensive but in my opinion it's worth it.
As far as keeping all your cydia packages, fork out a couple bucks and purchase PKGBackup in cydia. It works extremely well, I've used it more than a few times and nothing works as well. It makes a copy of your sources and apps youve installed from cydia and stores the info in your contacts and/or dropbox. Than, when you do the update/jailbreak you can reinstall PKGBackup and restore your packages. If you have more than a couple apps from Cydia, this is highly recommended. Also make sure you do a full backup in iTunes after running PKGBackup so that you know all the info will be current for both iTunes and PKGBackup. Hope it all works out!