I (think I) successfully completed the jailbreak for 1.1.1 yesterday. I'm running apptapp and 3rd party apps. Have the full 7.23 GBs (or whatever). I used Trip1Prepz to prepare the 1.02 for the jailbreak.
Yesterday, I synced the phone fine.
This morning, I connected to iTunes and it wants me to set up a new phone.