some said iLiberty better.. and some said ziphone is the easiest...

i use ziphone 3.0 to upgrade/unlock

-- Open iTunes & Connect the usb cable to the iPhone

1. download 1.1.4 firmware 1st - Check It Here
2. Enter DFU mode - Hold power + Home button simultaneously until your iphone rebooting/boot
3. Once the apple logo appeared, released Power button but HOLD the Home button.
4. Wait until iTunes tell that you're now on restore mode.
5. Press SHIFT button (Keyboard) & click restore button on iTunes.
6. Select the 1.1.4 firmware and start restoring..