Do note now that y'all have unlocked you absolutely MUST go in and turn off iTunes autoupdate feature. Also, DO NOT upgrade to iTunes 7.5. Keep 7.4. You may lag on firmware updates but 1.1.1 pretty much has everything for now and is stable. Until Apple does something major it'll be all you need. Heck, 1.0.2 wasn't bad at all either.

If anyone has problems; it is possible to erase and rewrite the phone's 'baseband' such that it's in as-new status. One then would load the 1.0.2 firmware and have a phone that's in 'pristine' status. Haven't tried a bricked phone but on a misbehaving/improperly upgraded iPhone this worked perfectly.