You really need to read
http://blog.iphone-dev.org/ every time an update comes out. A general rule of thumb is
DO NOT UPDATE A JAILBROKEN PHONE UNTIL CHECKING THERE.
That being said, you'll have to do a restore. I'd check around on the boards because I don't have time to find the actual link, but there should be information on how to do a restore when you've updated your jailbroken phone prematurely.
*edit*
Here's a quote from another forum:
putting the phone into DFU mode (hold the home button for 20 – 30 secs) whilst in iTunes and you'll get a prompt to restore
that's restore mode not DFU
To put your iPhone in to DFU mode:
1. Turn on iPhone
2. Connect to PC/Mac
3. Open iTunes
4. Hold down power and home buttons
5. Wait untill red slider appears to shut down iPhone – keep holding the buttons.
6. Wait untill the iPhone shuts down
7. Release power button, keep home button pressed (if the Apple logo appeared you didn't release the power button quick enough – try again!)
8. Wait about 7 seconds – iTunes should say there is an iPhone connected in "restore mode"
Your iPhone screen should be blank! No iTunes/Dock Cable logo.
if there is an iTunes/Cable logo you are in recovery mode not DFU!
Try again until you are in DFU mode
**edit**
Do that and you should be fine. You probably screwed yourself out of being able to software unlock the phone (not jailbreak, unlock). You can still jailbreak after the devs release the newest one, but you probably won't be able to unlock in the future if and when they release unlocking software. If it doesn't concern you, then everything's fine.