I have just restored my phone back to 1.1.1 after a 1.1.2 gave me issues

I downgraded the baseband, ran restore, jailbroke and unlocked

when i went into installer it asked to update, so i did.

however when i tr to download apps in it, its says "Error, Package download Failed"

now my wifi is on and edge is on and activated, the internet works fine. I have tried to remove teh source and readd it.

it does this with every item

Any idea's