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I think you mean jailbreakme.com. That solution works great to jailbreak and activate 1.1.1 firmware iPhones. As for the unlock, which method did you use? I know iPhoneSIMFree's software unlock has survived every firmware update, even updating to 1.1.3, but some of the other software unlocks had problems going to 1.1.2.
Which unlock method did you use?
Which unlock method did you use?