OK, to start I had tried several different methods and decided after work this morning to try the soft upgrade. Had a slow wireless connection but I let the software do its thing. It probably took well over an hour but it rebooted and now I am at 1.1.3 on Firmware 04.02.13_G
Worked awesome! Everything was fully functional except "Locate Me" in Maps but I installed Navizon and it works flawlessly! Finally excited to have it working correctly as the "Official Upgrader" failed for me after 3 tries!
I had a Day 1 iPhone that I just recently updated from 1.0.1 > 1.0.2 > 1.1.1
Jailbroke w/iNdependence the whole way and it worked. Just took a lot of restores until I tried the soft upgrade. Did it from a Jailbroken 1.1.2 just in case your wondering! I also uninstalled all the apps and SpringBoard stuff I had installed.
If you have the ability to gain access via SSH through your Mac, Im sure that would work but I was not able to do this due to the router setup. The definitive jailbreak guide on this site is perfect and if you follow it, it seems much more reliable.