hope this help...
DOWNLOAD iPhone1,1_1.1.4_4A102_Restore to your desktop
UNINSTALL your current Itunes
Go C

Documents and Settings\My Documents\My Music\iTunes and delete all the files in there!
DOWNLOAD ITUNES 7.5 and install
DOWNLOAD Iliberty setup and install
1. Put your phone into DFU mode..
- basically open your itunes 7.5
- press power button and home button (count for 10 sec)
- keep holding home button but release power button for another 10 sec
- Itunes should pop up something by now.
- pres shift on ur PC keyboard and click restore button on Itunes
- Load iPhone1,1_1.1.4_4A102_Restore from your desktop
- 1.1.4 is done on your iphone BUT ITS LOCK!
2. Open Iliberty
- Close your Itunes
- In the Iliberty tab, go Advanced option and check everything.
- go back to main screen and check everything.
- Press Go
- VOILA..
By the way, when i unlock, my was using Iliberty version 1.2.0.65
good luck!