so yesterday i upgraded to 1.1.1 and unlocked, everything went fine - i tested the EDGE connection and it worked (i had to manually edit my preferences.plist file originally, so i thought maybe the upgrade would break it, but surprising the settings were still there) - NO i don't have EDGE in Network Settings on Phone..
however, today i can no longer get on the EDGE network...
i'm using Cingular with the follow in my prefs.plist file
since you have AT&T try restoring your phone (with itunes to original settings) then use http://www.jailbreakme.com/ to jailbreak your phone since you do not have to unlock it.