I just upgraded my iPhone to 1.1.3 including jailbreaking, activation
and unlocking (I am in Sweden) using ZiPhone. It is supposed to work
on any iPhone in any state including 1.1.3 out of the box devices.
1: Do a restore in iTunes (and backup if you like)
2: Run ZipPhone (I used the 2.3 UI) and select all three options
(Jailbreak, Active, Unlock) and waited 2.5 minutes!
3: All done!
Very very very simple process and it just worked!