Capttanhowdy, If you want to update to the latest software you can and then you can just download ZiPhone 2.5 from
http://www.downloadziphone.org/ and unzip the contents and run ZiPhone while you have iTunes running then make sure your iPhone is turned off and then hold the home button while connecting the phone to the iPhone dock and continue holding it until iTunes detects the phone in restore mode then just tick the options that you want to run on ZiPhone and start, its that easy.
I have run this on a OTB 1.1.2 upgraded to 1.1.4 and it worked fine for me.
Although you need to stick to the right way to do this otherwise there is a possibility that you could brick your phone but ZiPhone tells you this in the program but stick to this method and you'll be fine.
There are lots of video tutorials on this subject if you want by just searching youtube or just check out
www.ziphone.org
Hope you get what you need.