Alright so i'm seeing the light at the end of the tunnel...i just need some help now. I downgraded from 1.1.3 and used to unlock. I used MacMan Pro's tutorial (found here:

In independence it says my phone is activated and jailbroken. I'm assuming its at 1.1.1 firmware. In the instructions for the jailbreak it says to update to 1.1.2 you need to plug the phone into the dock and do the update on itunes. When i connect to itunes it says do you want to create a new iphone or restore from my previous unjailbroken last backup. Under those two options it shows my phone number. Which one am i supposed to use. I don't want to lose my contacts and everything...does the restore only have contacts and photos on it or would that bring me back to the not jailbroken 1.1.3 i was running before?

Oh and though in independence it says i'm activated my phone is getting no service as if it isn't. and it says i have an incorrect sim card