ok so i went out on a limb and tried it out. i had a 1.1.3 unlocked iphone that was unlocked using ijailbreak (which is ridiculously easy to use by the way, considering i dont know JACK about unlocking). i then upgraded to 1.1.4 in itunes without my SIM card in, which came back as successful. it deactivated the iphone though. i ran ijailbreak 0.5.4 and it worked succesfully although all my installed programs are gone. anyone know how to get them back?
earlier today i took a 1.1.2 NOT unlocked iphone, upgraded 1.1.4 in itunes, and then used ijailbreak on it successfully as well.
so if you have a mac, this is the EASIEST way to go in my opinion