Just to share some info with others who have the same problem so they do not waste time trying to fix this.

My iphone is week 47(bought it on dec 30 2008) OTB 1.1.2 with BB 04.02.13_G activated on with AT&T also Jailbreak. Everything was working fine until yesterday WIFI is grayed out and I have tried everything from downgrading back to 1.0.1 to re-virginize it but no luck. So finally decided to call apple and the tech guy tells me to do all the resets no luck and as a last desperate move I decided to do the upgrade to 1.1.3 but no luck also so now the phone is 1.1.3 F with 04.03.13_G BB and the WIFI still does not work. So now, I am fug, going to take it to the genius bar and I know that they are going to end up giving me a new phone because it seems like this wifi thing is a hardware problem.