I know there are plenty of guides out there already but while researching I choose to take parts from different ones and not follow one specific guide. These are the steps I have taken to successfully perform the following:

1. Virginize iPhone - 1.0.2 iPhone unlocked from AnySim 1.0 or 1.0.1
2. Restore virgin iPhone to firmware 1.1.1.
3. Jailbreak and Activate iPhone Firmware 1.1.1.
4. Unlock iPhone with AnySim 1.1.
5. Restore data back on iPhone via iTunes
6. Activate YouTube

NOTE: You only need a computer briefly for the Virginizing part. After that ALL steps are directly on the phone.

If you intend on following this Guide please completely read through first so you are comfortable. Also post back afterwards if it has worked for you.

IMPORTANT: Also read the additions to the Guide and FAQ in the post below before starting.

================================================== ===============================
====== Virginize iPhone - 1.0.2 iPhone unlocked from AnySim 1.0 or 1.0.1
================================================== ===============================

Pre-Steps 01 - Perform a final sync with iTunes to backup your SMSs, Contacts etc.

Pre-Steps 02 - Uninstall all applications (except BSD Subsystem & Mobile Terminal, if installed). This may not be nessessary but I thought it couldn't hurt.

Pre-Steps 03 - I ran the virginizing steps with my local SIM (not iPhone AT&T SIM).

Pre-Steps 04 - Download virginizing files (click on link then remove '-' in the URL):
http://rapidsh-are.com/files/6689240...-pack.zip.html
Mirror: http://rapidsh-are.com/files/6689264...-pack.zip.html

01. Turn off auto-lock. Settings > General > Auto-Lock > Never

02. Install 'BSD Subsystem' via iBrickr (if not already installed).

03. Install 'Mobile Terminal' via iBrickr (if not already installed).

04. Make directory /usr/revirginize in your iphone (using iBrickr)

05. Unzip and Upload all files to your iphone in directory /usr/revirginize (Using iBrickr)

06. Start 'Mobile Terminal' run each command one by one. Wait until "Done" or "Enjoy" on commands starting with './'

NOTE: DO NOT POWER OFF YOUR PHONE WHILE THE RE-VIRGINIZER IS RUNNING. WAIT FOR IT TO COMPLETE!
NOTE: Double check spacing and spelling before entering these lines. It is important that the previous line runs before moving on.

Copy 'seczone.backup' to computer via iBrickr. This is your back copy of the seczone.

You should see the following after the last command:

Resetting target...
pinging the baseband...
issuing +xgendata...
firmware: DEV_ICE_MODEM_03.14.08_G
eep version: EEP_VERSION:207
eep revision: EEP_REVISION:7
bootloader: BOOTLOADER_VERSION:3.9_M3S2
Done

NOTE: iphone is now virgin again (for 1.0.2) and ready for upgrade to 1.1.1

================================================== ===============================
====== Restore virgin iPhone to firmware 1.1.1.
================================================== ===============================

Pre-Steps 01 - Turn off iPhone, insert AT&T SIM Card and turn on iPhone

Pre-Steps 02 - Download iPhone 1.1.1. firmware file:
http://appldnld.apple.com.edgesuite....a_Restore.ipsw

Pre-Steps 03 - I saved iPhone 1.1.1. firmware file to the following location but you can put it anywhere:
Docs & Settings > USER > Application Data > Apple Computer > iTunes > iPhone Software Updates

01. Connect iPhone to computer and open iTunes

02. Hold 'Home' and 'Power' buttons until yellow triangle

03. Hold 'Shift' and click 'Restore'

04. Navigate to Docs & Settings > USER > Application Data > Apple Computer > iTunes > iPhone Software Updates (or where you saved it in pre-steps 03).

05. Select 'iPhone1,1_1.1.1_3A109a_Restore.ipsw'

06. Restore to 1.1.1.

NOTE: After restore is complete, slide for emergency screen, and enter the following into the keypad: *3001#12345#* then press Call. Check "Firware version" it should say 04.01.13_G. This is confirmation you have 1.1.1 firmware on the iPhone

================================================== ===============================
====== Jailbreak and Activate iPhone Firmware 1.1.1.
================================================== ===============================

Pre-Steps - Turn off iPhone, insert AT&T SIM Card and turn on iPhone

01. Press the Home button and you will be back at the activate iPhone screen.

02. Slide the emergency slider again.

03. Enter *#307# then press Call. The iPhone will ring, press the X button at the top to delete all the characters you just entered.

04. Enter 0 then press Call again while it is still ringing. Now press Answer, then press Hold, then press Decline.

05. At the iPhone's dialing keypad. Press the Contacts button below. Press the + in the upper right corner to make a new contact.

06. Press First, Last button. Enter A for the first name then press Save in the upper right corner.

07. Press Add New URL button. Enter prefs://1F then press Save in the upper right corner. Press Save again. Press the URL button.

08. At Settings screen. Press General then Auto-Lock, then Never.

09. Back at Settings screen. Press Wi-Fi, then select your network. Enter your password and press Join. Connect to network.

10. Press the Home button. Slide the emergency slider again. Enter 0 then press Call. Press Answer, then Hold then Decline.

11. At the contacts screen again. Press the + icon, then the First, Last buton. Enter Z for the first name and press Save.

12. Press Add New URL button. Enter http://jailbreakme.com then press Save, then press Save again. Press the URL button.

13. You will now head to the jailbreakme.com website. Scroll to the bottom of the page and press the Install AppSnapp button. Safari should crash after a few seconds.

****If it doesn't crash after 1 minute, then press the Home button. Wait until the iPhone becomes responsvie, then go into the keypad and try again from step 10 (no need to add another contact though).
Suggestion from user bezman
- Turn off iPhone, take out SIM, turn on iPhone (with no SIM), try again from step 10****

14. Once Safari crashes it will send you back to the activate iPhone screen. Wait about 30 seconds and the animation over the slider will freeze for a second and the iPhone will reboot.

15. You will now have access to the SpringBoard.

================================================== ===============================
====== Unlock iPhone with AnySim 1.1.
================================================== ===============================

01. Go to Installer

02. Click on Sources icon, add the source: http://i.unlock.no

03. Refresh sources

04. Under System folder, install BSD Subsystem

05. Under Unlocking Tools folder, install AnySIM 1.1.

06. Return home to Springboard - Turn off iPhone

07. Insert your local SIM card (not iPhone AT&T SIM)

08. Restart iPhone and run AnySim 1.1.

09. After complete turn iPhone off then on

NOTE: iPhone should be unlocked

10. Uninstall AnySim 1.1. via installer

NOTE: Additional sources for AnySim 1.1p if you prefer (http://rep.frenchiphone.com & http://iphone.blurgle.ca/repo)

================================================== ===============================
====== Restore data back on iPhone via iTunes
================================================== ===============================

01. Connect to iTunes and select restore from Backup

NOTE: This will put back your SMSs, Contacts etc

02. Perform a sync via iTunes to put back your Music and Videos.

================================================== ===============================
====== Activate YouTube - Should not be required after the new AppSnapp
================================================== ===============================

At this point, if your YouTube is still not working perform the following steps:

01. Open installer

02. Under Unlocking Tools folder, install YouTube Activation

03. Restart Phone, check YouTube

================================================== ===============================

CREDITS: Thanks to Kengz for the virginizing files & and others who's information I have used.

Thanks for this.

Is it ok to do the restore, jailbreak and activate with a non-AT&T sim though?

ADDITIONS TO THE GUIDE: These additions will not fit in the guide above due to size of the original post.

================================================== ===============================
====== Check iTunes version on computer
================================================== ===============================

It has been reported that older versions of iTunes (7.3.x) will not load the 1.1.1. firmware file. If you have an older version please uninstall iTunes and then install a newer version. My iTunes is 7.4.1.2. If you are unable to locate this particular version then perhaps the following will help:

Windows - 7.4.1. : http://www.oldapps.com/OldApps/iTune...esSetup741.exe
Mac - 7.4. : http://www.oldapps.com/OldApps/iTune.../iTunes7.4.dmg

================================================== ===============================
====== Frequently Asked Questions
================================================== ===============================

CAN I USE THIS GUIDE?

Can I follow the guide without the AT&T SIM card?
- Many users have posted success from following these steps without the AT&T SIM card. However, if you have it then I would recommend you use it.

I have downgrade my new 1.1.1 iphone to 1.0.2 and then unlocked with anysim 1.02. can i use this guide to unlock my iphone in 1.1.1? if yes from which part should i start?
- As AnySim 1.02 was used you will need to follow this guide from the beginning. IMPORTANT: You need to make sure you're using the 03.14.08_G baseband first. To check go to the call keypad and dial '*3001#12345#*' then press 'Versions'. If you do not see '03.14.08_G' then you will need to downgrade your baseband before beginning this guide.

I have an OTB 1.1.1 downgraded to 1.0.2 and then used anysim 1.1 to unlock. How can I upgrade to 1.1.1 unlocked?
- As AnySim 1.1 was used you can follow this guide from the step : Restore virgin iPhone to firmware 1.1.1. You can ignore the virginizing steps as they are only for people that used AnySim 1.0 or 1.02

Will this guide work on a phone that was unlocked using iUnlock?
- Yes. Users that have used iUnlock have posted success from following this guide.

I have modified various parts of my 1.0.2 iPhone. Do I have to restore these settings first?
- No. You can follow this guide without putting everything back the way it was. However, please note that your changes will not be transferred when you upgrade. I suggest you check with the owner of each modification as to will it work with 1.1.1.

TERMINAL QUESTIONS

Which Terminal should I install?
- Both MobileTerminal vsvn198 & MobileTerminal VT100 vsvn161 have been reported to work.

When Terminal starts I cannot see '#'
- Reinstall the Terminal and BSD Subsystem - Try again

In Terminal I type 'cd' and then 'space' and it says [process completed]
- Reinstall the Terminal and BSD Subsystem - Try again

After running './norz seczone.backup 0x3FA000 0x2000' I only see the following then it stops
# ./norz seczone.backup 0x3FA000 0x2000
geohot's nor dumper
all your norz are belong to us
super fast...just the way i like it
Dumping: A03FA000-A03FC000
Waiting for data...
- Reinstall the Terminal and BSD Subsystem - Try again

After successfully running './norz seczone.backup 0x3FA000 0x2000' should I quit Terminal to copy the backup file to the computer?
- No. This is not required. While I was going through the steps I had the iPhone connected to the computer. I opened Terminal and went through each line. At the point of copying the backup file I just opened iBrickr, copied the file, closed iBrickr and continued with the iPhone. (Nothing was closed).

UPGRADING AND UNLOCKING

While upgrading to 1.1.1. I receive 'iPhone could not be restored. There is not enough memory available'
- Check you have space available on your computer. The ipsw file is basically a compressed zip file and will need to be extracted before running. You can also try removing some 3rd party apps from your iPhone if you have a lot installed.

Safari doesn't seem to crash
- Please check you have an active WiFi connection. Can you see the http://jailbreakme.com webpage? You should then scroll down to the bottom and click on Install AppSnapp?

While running AnySim 1.1. I click on the red button but it appears to hang
- Please check you have the BSD Subsystem installed.

After running AnySim 1.1. it says 'Unlock Successful' but I have no signal
- Some users say they fixed the problem by replacing the Lockdown file. Try searching the forum for further assistance.

================================================== ===============================
====== Additions from Users that have followed the Guide
================================================== ===============================

01. Putty rather than Terminal during Virginzing steps (from user zoro66)

If you are uncomfortable typing the virginizing commands directly on the iPhone via Terminal, and would rather type them on a computer, then perhaps your best option would be to use Putty.

For after you have completed the GUIDE:

02. Add EDGE Fix - After applying this fix your EDGE settings should remain after the iPhone is turned off. (from user abtf2)

01. Go to Installer
02. Click on Sources icon, add the source: http://i.unlock.no (if not already added)
03. Refresh sources
04. Under Unlocking Tools folder, install EDGE Settings Fix
05. Turn iPhone off then back on

03. Add Custom Ringtones in 1.1.1. (from user abtf2)

See the following post : Better m4a Ringtones - Firmware 1.1.1
http://www.hackint0sh.org/forum/showthread.php?t=13663

================================================== ===============================
================================================== ===============================

Excellent post... thanks!

I've followed the same steps multiple times, and I still cannot get iTunes to update/restore to 1.1.1. I always get error (6). Restoring to 1.0.2 works fine. I've tried with my T-Mobile SIM or the original AT&T SIM, in recovery and DFU modes, restore and update or just restore or just update. Tried via MobileTerminal, winSCP, putty to run the virginizing steps...still nothing! Always error (6) and I have to go back to 1.0.2 and redo jailbreak, activate, anySIM 1.1 unlock again to get a working phone. Any ideas?

@ chewy106

What version of iTunes are you using? Mine is 7.4.1.2. If yours is different then perhaps you could uninstall and install that version.

Have you tried restoring to 1.0.2 and then restoring straight away to 1.1.1. Are you using the .ipsw file listed in this post?

Have you ever used the original AnySim 1.0? If so was the virginizing successful?

At what point to you recieve that error and what is the complete error message?

Same version of iTunes, 7.4.1.2. I used the old iphone.unlock.no command line unlock and not anySIM. Virginizing each time (I've done it about 12 now) is successful. Using the .ipsw from the post (from Apple's site), tried restoring right to 1.1.1 and tried restoring to 1.0.2 then updating to 1.1.1 (and tried jailbreak/activate/unlock in between). I get the error about 1/3 through the restore process, and it's a generic "the iPhone cannot be restored, an unexpected error occurred (6)" one - I'm not at home though, so the wording might be off on that error. Going to 1.0.2 works just fine though. Strange.

@ chewy106

That really is strange. I take it you've searched this forum for a possible solution?

If you are using the .ipsw locally just check that it has downloaded correctly.

Mine is : 159,668,150 bytes (152 MB)

Yep, confirmed it's correct size, and have redownloaded it multiple times. Tried even letting iTunes download it twice, still get the error. I've searched the forums here and elsewhere, even posted here the other day to see if anyone else has this problem. Closest I found is one person who also had bad IMEI (mine's never shown the 49 one) who used a 7.3 version of iTunes to update, which I'm thinking of trying soon if nothing else works. It's definitely a mind-boggler hehe...

I have the OTB 1.1.1 downgraded to 1.0.2 and then used anysim 1.1.1 to unlock. How can I upgrade to 1.1.1 unlocked?

This is what I think:
1) restore firmware 1.0.2
2) reflash ICE03.14.08_G.fls and ICE03.14.08_G.eep via SSH (like steps in OP's post).
3) upgrade to 1.1.1 firmware through iTunes
4) use the jailbreakme solution.

Please advise. Thanks.