DigitMemo.com

It won’t downgrade the firmware, meaning so far you can’t re-unlock an iPhone that’s been 1.1.1, but it’s still 1.0.2 in all its third-party application glory.

The iPhone Dev Team folks are working on a way to downgrade the new firmware to let people unlock their phones again, but for now AT&T users sitting pretty, and non-AT&T folks can at least do the WiFi thing.

• Make sure you have a copy of the 1.0.2 firmware iPhone1,1_1.0.2_1C28_Restore.ipsw, stored in:

youruser/library/iTunes/iPhone Software Updates

• Reboot iPhone holding the top button (power) and the home buttons.
• Release the top button 10 seconds after that, right after the screen goes dark. But keep the home (bottom) pressed for a while.
• The iPhone screen will appear to be off. Now start iTunes manually.
• iTunes will tell you it has found an iPhone in “restore mode.”
• Press option key and then click the restore button.
• Select the 1.0.2 firmware .ipsw file from here:

youruser/library/iTunes/iPhone Software Updates

• The phone will restart and there will be an error out at the end. Don’t worry. It was bound to happen (if the iPhone returns to Restore Mode instead of Activation Mode, then you may have to restore the 1.1.1 firmware, wipe all information in the iPhone and then repeat from above. But first, try to restart the iPhone.)
• Shutdown iTunes.
• Launch the latest iNDpendence (Mac-only for now.)
• Activate the phone using a expanded 1.0.2 file (to do that, make a copy of the 1.0.2 ipsw file, then select “Open with…” from the Finder’s action menu and use BOMArchiveHelper.app (it will appear in the menu.) The ipsw are really .zip files.
• It will flash all sorts of errors, but don’t worry.
• Activate the phone.
• It will show the SIM error but now the iPhone will work again with your Wi-Fi and your apps.

Meanwhile, iPhone Dev Team is working full speed ahead on two things:

• Downgrading the baseband so they can unlock again the iPhones restored to version 1.0.2 from 1.1.1.
• Crating another free unlock that will work for version 1.1.1 of the software. According to them, both may be very near–now testing– “be patient and hold on until we come with a full solution for 1.1.1 firmware.”