I have been totally out of the Iphone loop for quite awhile now. Been happily using my 1.1.2. I have tried searching regarding my question but since 1.1.2 users are few in between, I thought I could get more direct answers this way.

History of my iphone 1.02->IPSF(paid version) 1.1.1 -> 1.1.2

I'm looking to upgrade to version 2.0

I used the paid version of IPSF, currently it says my phone firmware is 04.2.13_G so I'm not sure what my bootloader is.

Currently my Itunes is version 7.6

I know that I probably have to use Pwnage and Bootneuter but if somebody could help me with a step by step dummies guide to do the upgrade via MAC or point me to one, I would be very thankful.

what is a paid ipsf??

upgrade to 1.1.4 and then read this
http://www.iclarified.com/entry/index.php?enid=1557

well from what I recall, IPSF originally you had to pay for the unlock until Geohot IPSF became available.

Thanks for the link to that tutorial.

Can I confirm that I only need to use Pwnage to update to 1.1.4 version?

If you wanted to unlock @ 1.1.4 then iLiberty+ or pwnage v1.1 will work

If you want to go up to 2.0fw then use pwnage 2.0

as per my experience 2.0 works better if u have 4.6 BootLoader (useing bootneuter on 1.1.4) but i have done it with a 1.1.4 with 3.9 BL (i have upgraded 7 iphone to 2.0 and was head a group to downgrade to 1.1.4 again)

your 1.1.4 does not have to be unlocked

Alright so my Bootloader is 3.9 yes?

Would you advise me then to stay at 1.1.4 or go to 2.0 with 3.9 bootloader?

right now......
i advise you to stay at 1.1.2 and wait a while when few more apps are ported from 1.1.4 to 2.0

i came back to 1.1.4 (from 2.0) only after 2 days

if you want you can upgrade to 2.0 that is only if u dont want installer apps and are happy with app store and paying for the good ones

you can also go to 1.1.4 if your 1.1.2 is buggy and then get installer apps which are, according to me better than appstore

One of my two iPhones used the "paid" IPSF. I had previously upgraded from 1.1.3 to 1.1.4, although I can't remember the manner in which I did it.

Nevertheless, since an upgrade to 2.0 also involve upgrading the baseband, I would expect that pwnage 2.0 would work just as well from 1.1.2 as from 1.1.4.

I used pwnage 2.0 on my "paid" IPSF phone (used the guide from iClarified.com) and it appears to be working fine. One caution is that after the upgrade, when iTunes asks whether to restore from your old phone or set up as new phone, select the "set up as new phone" to avoid problems. You'll have to re-establish your bookmarks and alot of your settings, but the phone will work much better. Good luck.