Ok so I was following the instructions and first I got an error at this part:

"A screen will appear briefly showing the pre 1.1.1 upgrade process. If you get an error message stating "Host verification failed.", just click "Yes". This pop up will then appear. Click "OK". Close iNdependence. "

So I click ok and continue on to iTunes to update. iTues updated iPhone to 1.1.1 and tried to jailbreak the 2nd time by activate phone, I got a Failure message...

"Error, couldn't perform jailbreak. You need to downgrade to version 1.0.2, then perform the special upgrade to 1.1.1 (see help documentation for more details).

What do I do now? I tried restarting iNdependence and the iPhone and still the same error message...

This is the instruction I was following: http://www.hacktheiphone.com/111/iph...ep1_2_mac.html

Thanks for the help.