I purchased iphone from Hong Kong week 32 with I think 1.0.2 version with 3.14.08_G
when phone was purchased was able to only make phone calls and send sms (no wifi and could not activate EDGE) (did not know what unlocking program was used when purchased) I was able to snyc. my iPhone contacts that I had entered to my Mac PowerBook contacts/address
The phone originally had Nullriver installer version1.?
So with a friends help I proceeded to restore to factory settings and was then hoping to start again....however when attempting to add AppTapp v3.1 (as version 1.? not available) it would not finish to installation it just kept saying "please be patient may take 2-3mins" would then get error message "1603 or 1604" at this stage I was running iTunes 7.6 as the new version came out prior to me purchasing the phone.

I seemed to be stuck in an recovery/restore loop.... I set up a new user on my mac and also tried 7.4 iTunes different USB ports, iTune Helper OFF etc. etc....
I could not get out of Caution triangle on phone + restore,recovery mode message in iTunes.

I came across an article that said update to version 1.1.3 and it could solve problem

I did this and it has at least got me out of the recovery mode restore loop, I now have on my iPhone "No SIM card installed Insert and unlocked & valid SIM to activate phone" with the iTunes logo + USB logo + Slide for emergency.....
My firmware is now 4.03.14_G with version 1.1.3 & my IMEI matches what was originally on box (I Do NOT have 0049xxx IMEI)
I am in Australia and I am/was using OPTUS sim.

My question are
1/ Can I downgrade to version 1.1.2 & then unlock the phone??? And if so will I now need to acquire Turbo or Stealth Sim

2/ Can version 1.1.3 with 4.03.14_G be unlocked for phone use or will I have to wait for a new hack to come out?

3/ Does anyone else have any solutions to fix my phone to fully working state