If you get erorr BSD root: md0, major 2, minor 0 during ZiPhoning your non activated 1.1.2 iphone, and you cannot install any firmware beside 1.1.2, do this steps:
[it's impossible to software unlock by ZiPhone, its one method i've tried] only *SIM card work after this.

win guide:
1. Hold Power&Home button for 10 sec with iPhone connected into iTunes
2. Release power button after 10sec
3. After next 10 sec release home button
4. iTunes recognize iphone in DFU mode
5. Press restore + shift, chose firmware 1.0.2
6. During restore iTunes shows error (iPhone shows yellow triangle)
7. Ignore error its normal
8. After restore do restore again for firmware 1.1.1
9. This time iTunes shows error 1015 its normal.
10. Jailbreak 1.1.1 with www.jailbreakme.com
12. Install BSD subsystems, open SSH
13. Repair 300mb bug (manual with putty or with installer package)
14. Turn off, turn on iphone
15. Do Okto Prep for 1.1.2
16. Connect iPhone into pc, press update+shift chose firmware 1.1.2
17. After update it wouldn't be any errors, never mind there are
18. Jailbreak 1.1.2 with windows.bat (install SSH)
19. After jailbreak iPhone automatically reboot 2 or 3 times
20. It's activated

Ready to use but unable to unlock it with any version of ZiPhone in my case.
It's impossible to upgrade to 1.1.3 but try, meaby you can.
Install iWorld and use it with *SIM cards.
**edit**After release 2.5 ziphone try it, meaby it works

Cheers, gbling. Repley if my solution helps you.