erggg, after attempting and restoring back to 1.1.1 from 1.1.3, i encountered the same problem iv encountered last month.
the 1.1.2 JAILBREAK!
I am on windows XP (.net frameworks is updated, as is adobe flash and Java.)
I always encounter the "cannot connect to iphone" problem and nothing ever solves it. i ended up borrowing somebody's macbook to do the JB the first time i upgraded to 1.1.2.
the only thing that ever worked for me was when i used the FIRST OLDER version of the jailreak. the one without iPhuc, that leave the phone UNACTIVATED!
I found the older version once, a long time ago on some "Ultimate Guide" that was so not ultimate that it had u changing the lockdownd in 1.1.2...
I have AT&T now, so the activation is useless anyway.
I cant find the old version ANYWHERE!
Please, if anybody has it =( i reallllly need it.
AIM (avitzavi528) \PM\email (firstname.lastname@example.org) me if you have a solution or any info....