I'm running
3.0 (7A341)
4.28.08
i would like to update 3.1.2 but i keep reading mixed reviews about what to do.

if anyone has a good solution and doesn't mind helping out, it would be greatly appreciated.

I would recommend using Pwnage tool to create a custom 3.1.2 ipsw which will allow you to retain your baseband. You can then unlock your phone using ultrasn0w from cydia if you need to.

Edit: you'll need to jailbreak using Redsn0w before you update to the custom ipsw.