I'll state my problem from the beginning so you don't have to read the details:

When I shutdown my iPhone and turn it back on, i get the restore symbol (cable pointing to itunes)

Now the details: My iPhone (1.1.4) has recently has been "frozen" for a while now. It's not stuck at the Apple logo, it boots fine. The problem is that once I'm in any application, the touch screen doesn't work. The app loads (and the touch screen works fine to launch/scroll in the springboard), but I cannot touch any button/feature/etc in any part of the app once it does load.

So usually turning it on while connected to a computer solved that problem or a random restart would work. BUT a few days ago it didn't work so I decided to put the iPhone in restore mode and boot it out of restore mode with the advanced features tab from iLiberty+ for Windows.

So now when I restart my iPhone the restore symbol comes up

WHAT CAN I DO?

Just to clear things up: My iPhone rihgt now is working perfectly fine right now. Its just when I restart it, the restore picture comes up and I have to use iLiberty+ to boot it out of recovery.

try to go to Ibriker and free your iphone.
That might solve the problem

Hmm.. I got the first problem that you mentioned after installing Kate 1.3...

But, never encountered the current problem you are facing.. hmm...

DFU Restore
DFU restore erases and re writes all files where as in a notrmal restore some of the old files are still left on the phone

hope this helps you

Thread renamed, please read my signature about the thread's title format, thanks.

so since i have a 3.9 FakeBlank BootLoader and am unlocked, do I have to revert back up to 4.6 via BootNueter and re-unlock with iLiberty+?

i would suggest u keep 4.6 its the better BL
im not sure if reverting back with bootnueter will make a diff or not but its just a 5 min extra step so why not.
yeah and u should use iliberty and avoid ziphone