I had a thread on this a few weeks ago. I was able to get to firmware 2.0 with iTunes 8.0.2. I used a computer in my basement running Windows XP with iTunes 7.5 to downgrade to 1.1.4, and from then on I was able to get to 1.1.1. The only problem I had was the phone was not activated, and I didn't know what program to use to unlock it, so I updated to 2.2.1..