I upgraded and jailbroken the 1.1.3 and now mi Iphone doesnt play any sound or music, the volume control is always on the lowest level, and also the volume control button on the left side its not working either..
This happened to me as well. When I upgraded from 1.1.1 to 1.1.3, I had sound to begin with. Then, as soon as I installed the BSD Subsystem and Open SSH, the sound disappeared, like you described (the volume control didn't work. The iPod didn't play, the ringer didn't ring, etc.)
I reinstalled 1.1.3, unlocked, jailbroke, etc. and that fixed the problem. The sound returned, and I still had the BSD and the SSH installed on the phone.
So, hopefully the same procedure will work for you. I have no idea what produces the sound-loss issue, but I've read a lot of different posts from people describing the same problem - and there apparently isn't a silver bullet solution which will resolve it (some people have said doing a full reset works - it didn't work for me). Hopefully, subsequent firmware releases will render this issue irrelevant.