I was in your predicament similarly! I had a 1.1.1 and accidentally relocked/bricked the baseband so it was USELESS until I got this friendly iPhone hacker guy to help me for less than 20$ to insure my 400$ iPhone!!
http://cgi.ebay.com/ws/eBayISAPI.dll...250223439847or http://www.iphonesoftwaresolution.com