Hey people, just thought i would tell you as i'm happy that i have just finished upgrading from 1.0.2 to 1.1.1 and now i have a fully working 1.1.1 iphone all good. incase your wondering how i:

Had a 1.0.2 that i had unlocked using a free software method so...
I upgraded to 1.1.1, bricked it (i did this so that the baseband was upgraded)
downgraded to 1.0.2 again using the Dev teams instructions,
Activated, jailbroke it
installed apptapp
downloaded IPSF unlock, which i had payed for weeks ago.
ran IPSF unlock
used iNdependance v1.2.2 to upgrade to 1.1.1 again
jailbroke 1.1.1 using iNdependance
activated 1.1.1 using iNdependance

done. working 1.1.1 unlocked iphone with youtube activated all sorted, easy as pie! and it only cost me £25 for the IPSF unlock!