My iPhone is now with 2.0 firmware thanks to Pwnage 2.0 tool 
. I used The Happy Coder's instructions.
Took a little bit more time than previous effort with 1.1.4, but all went smoothly. Most importantly all my calendar events, contacts, and other stuff was restored.
Yesterday, I went to AT&T store in Youngstown,OH to check 3G phone. What can I say... It's almost identical box. 3G isn't really something I need. GPS is. All and all, I don't think I need 3G phone. With 2.0 firmware my current iPhone of first generation is really really realy powerful smart phone.
While in [AT&T] store annoying saleswoman kept bothering me about how can she help me. I told her I am intereted in this 3G phone and showed her my current phone with T-Mobile logo 
, didn't seem like she was amused, she just left me alone after that.
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If something goes wrong
Note, if something goes wrong with the phone, to restore it, do not use iTunes default restore option, rather do this:
I've had to restore my phone once already. I don't know what happened exactly but none of the third party applications from appstore were running. They'd start but automatically self-quit after few seconds.
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