to upgrade to 1.1.1 from 1.0.2 you
DO NOT use the shift+restore
you press shift +
update - then find the 1.1.1 file on your PC,
you'll need to download the 1.1.1 firmware, you can easily find it via google or on this site..
http://appldnld.apple.com.edgesuite....a_Restore.ipsw
then jialbreak/activate and if needed unlock with AnySim 1.1
i always sync the phone in tunes, then restore the phone to 1.0.2, then shift and update to 1.1.1, i have done thsi many times, and you can get back all your contacts/sms/call log etc after to plug it back into the PC and open itunes, it will ask you if you want to restore your information from a previous backup.
/\ and you're asking how to update to 1.1.1

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