Hey I followed all the instructions and got up to installing the soft update package from installer. It installed and rebooted the phone in dfu mode. What could be the problem? thankyou in advance

I've got this same problem, so what I recommend you to do is to start from one 'fresh iPhone'.
1) Downgrade to 1.1.1
2) Update to 1.1.2
3) Then goes to JB 1.1.3 and have fun.

The only thing that isn't working on my 1.1.3 is the Mail that keeps asking me for password.