I was concerned that the new version of iTunes (7.4.2) that contains the lethal iPhone 1.1.1 firmware update would lock out older, hacked users from being able to sync correctly.

I have tested this and, fortunately, this is not the case and 1.0.2 hacked iPhones still sync perfectly with iTunes 7.4.2 (just don't click 'yes' to the firmware update, yeah?)

I tested with upgrading iTunes from 7.4.1 to 7.4.2 with the iPhone disconnected. I altered a couple of address book entries on my Mac, and added some test calendar events. I put the phone back in the cradle, at which point iTunes asked me if I wanted to upgrade to 1.1.1 firmware. I clicked 'NOOOOO' (and also turned off automatic update checking in the iTunes preferences).

I then added a couple of tunes to my iPhone playlist (which syncs to the phone) and hit 'Sync' on the iPhone page....

Everything synced as expected. Calendars, addresses, tunes. No odd behaviour and no forced firmware install, and the phone is still working as expected.

So at least Apple haven't been complete assholes and blown out older firmware users - so far I can still use my phone as before until either the Dev Team crack the new jailbreak methodology, or if it never gets broken, continue with 1.0.2 and individual updates ripped from the 1.1.1 ipsw file...

(additional info - this is on a Quad G5 Mac running Tiger 10.4.10, iTunes 7.4.2, and a heavily modified iPhone by software only)