I've recently successfully upgrade using soft upgrade to 1.1.3, the phone works great except for installer(AppTap) not working. So I decided to reinstall everything, and hope it goes smooth.. bad call...
my phone came shipped with 1.0.2, I was able to hack then from 1.0.2 to 1.1.1 and 1.1.2. with the latest updates it was quite easy to hack/jailbroken the iphone.
my iphone starts with S/N:327325EMXXX
so it's pretty dated. current version is 1.1.1(3A109a) it's jailbroken
This is what I would do. Downgrade to 1.0.2. Revirginize the phone. Upgrade to 1.1.1. Jailbreak and unlock from 1.1.1. Then soft update with ibrckr113 special edition. I havent had a problem yet doing this method, and it always keeps the unlock and jailbreak
boot phone into dfu mode hold the sleep wake button and power button till phone turns. Press the sleep wake button for a sec. then the home button if you phone is plugged into itunes the screen on the phone will stay off but itunes will see the mode hold down shift click restore and select the 1.0.2 firmware