This thread should be stickied. This will follow progress as we attempt to find a working solution. Presently, iphonesimfree.com claims their v1.6 solution will fully perform this upgrade, however no free solution exists.
All currently known *FREE* methods of unlocking will brick your iPhone and do not work with unlocked 1.0.2.

Please, only respond to this thread if you have PERSONALLY successfully accomplished the upgrading of an AnySIM or iUnlocked 1.0.2 to an unlocked 1.1.1. No questions will be answered because they don't have answers.

All of the steps have been accomplished with the exception of repairing the baseband so it can be successfully updated to v1.1.1. That is the information we are looking for.

Thank you.