When I try to restore my 1.1.4 unlocked iPhone using itunes, it prompts me to upgrade to 1.1.4. Since I already have 1.1.4 software, will I have any trouble if I allow itunes to install the upgrade?

I dont understand.. can you give more info about what you want to do?

You have a 1.1.4 iPhone, unlocked.. and you're trying to upgrade to 1.1.4? If im right, that makes no sense. why would you want to restore an 1.1.4 Unlocked phone to the same firmware?

restore by putting the phone in dfu mode and hold shift while clicking the restore prompt this will give you the freshist restore. Not many people us update on unlocked phones anymore. 2.0 forces a restore.
Good luck

u can do that or simply uninstall itunes and apple mobile device support and reinstall..u r done..by the way thread is soon gonna closed!!!