02.08 is the previous baseband, 02.11 is the current, and according to sleepers.net (BigBoss' blog) it's the best yet.
So here's what I did.
1. In iTunes 8, I restored my phone to regular 2.1 (no jailbreak). When the screen said "iPhone is Activated" I didn't go any further in iTunes 8. (I didn't restore my backup or sync anything).
2. Uninstalled iTunes 8 and Apple Mobile Device Support from Add/Remove Programs
3. Did not reboot PC when iTunes 8 Uninstall asked me to.
4. Once uninstall was complete, I installed iTunes 7.7.043
5. Used quickpwn with 2.1 bundle found here:
http://xpwn.co.uk/quickpwn-2.1-2g-3g.rar
6. Ran Quickpwn, checked Cydia and Installer. Unchecked Custom logo.
7. Selected the iPhone1,2_2.1_5F136_Restore.ipsw file (2.1 3G Firmware)
8. I followed the directions to get it into DFU mode, yadda yadda......and it jailbroke my phone. Took a few minutes with just a spinning loading circle on a black screen (I thought for a minute I killed my phone lol).
9. Once the phone rebooted, Cydia and Installer weren't visible, this is normal.
10. Reinstalled iTunes 8.
11. Opened iTunes 8 and Shift+Restore and selected bushido's Custom firmware.
12. It installed just fine, once the phone rebooted, I restored my current backup, but canceled the file sync after it backed up.
13. Replaced the MobileInstallation file using TotalCommander and Tpot addon. Rebooted iPhone.
14. Synced in iTunes 8. Everything works.
Now have Modem Firmware 02.11.07
-Derek-