ok,
as I want to save the one or the other from the same frustration I had by not finding a clear statement on how to do it:

1.1.1 (unlocked with anysim)
plug into itunes and sync (to backup)
then hit "update" and let itunes do its job
when finished close itunes
start ziphone -a -j -u (http://www.iclarified.com/entry/index.php?enid=664)
wait
DONE! Full stop.

thats it. you are on 1.1.3 with all contacts and SMS everything still on.
thats it. full stop.

no waisting your time with all the 100s of threads with BL versions, okto-something, basebands, virginizer...

Yup. But remember, this is for 3.9 BL phones