Ok I have been at this for about three hours. I originally started from a jailbroken 1.0.2, and upgraded to the 1.1.1 image (erasing everything on the iphone). After I installed 1.1.1, without getting a 1052 error (as people say SHOULD happen), ITunes activates my phone correctly, I went to the following websites to jailbreak my iphone:

http://jailbreak.toc2rta.com
then
http://www.jailbreakme.com

and installed AppTapp. This worked fine. However, after apptapp is installed I can install applications fine, BUT when I turn the iPhone off and back on again it is stuck at the apple logo. I have had to do a restore 5 times already and this still happens. Even when I only jailbreak and install Apptapp and turn the iphone on and back off again, I still get the apple logo!

Any help?! Please!