Downgrade from 1.1.1 to 1.0.2 PC Version!
Thanks to a great find by KMAC, WE ARE NOW ABLE TO DOWNGRADE OUR PHONES!!!! I just wanted to make a simple guide for people with PC's to follow
Start iTunes and plug in your 1.1.1 phone
In 1.1.1, hold Power and Home buttons and count 10 seconds (your phone will turn off, just keep counting), release the power button but continue to hold the home button until your phone is recognized by iTunes. (phone screen will be blank)
A message will pop up and ask you to restore your iPhone. Holding down the SHIFT key, click on the restore button. Navigate to your 1.0.2 software
When it's done, you will get an ERROR, click OK. Your phone should show a yellow triangle. Leave iTunes running and run AppTap.
AppTap might encounter an error as well, however, it will bring your phone to the Activation screen. Once again, start iTunes, ignore all messages from it, and run AppTap. Now it will jailbreak your phone and install Installer. (You may have to retsart your PC after arriving at the activation screen if iTunes isn't recognizing your phone)
Simply use iASign or whatever you use to bypass activation.
Your phone is now back to 1.0.2.
(I am using iTunes 184.108.40.206)
WI-FI, calls, everything fully functional!
amnesia created a youtube video to further clarify things: