So when I sold my iPhone on ebay, I had a condition that payment must be made within 24 hours. The person who bought it couldn't get money in time and we kindly agreed to not exit out of transaction. I had a number of reasons to keep an iPhone for now.
But today and yesterday I noticed that I couldn't access my iPod area of iPhone and when connecting to my laptop, iTunes complaining that something got corrupted. Either way, I opted to restore and update my iPhone to 1.1.4. Previously, I've been running 1.1.1.
So now I am sitting and waiting as iTunes downloads necessary files.
One update is done I will be using this walk-through to jailbreak and unlock it:
Archived comments
iPhone pleasantly surprised
— f1vladiPhone pleasantly surprised me. After jailbreak, unlock and activation, I hooked it back to iTunes and it offered me to restore everything from backup. And it seamlessly restored all contacts, notes, calendar, etc retaining new 1.1.4 version!