I rock so does
Ok, heres what you have to do if ziphone wont work:
Restore to a working ipsw, i did beta 5
While AT the PSOD hold the power and home for 10sec then release power and continue to hold home for another 5sec
The screen should be black and itunes should recogize it in DFU mode - if its not black you must restore and try again
Restore to 1.1.4 while in the black screen / DFU mode - error 1015
Run patched ziphone baseband downgrade - wait - it never gave me a "finished", I waited 10min and just quit it
Restore to 1.1.4 again - error 1015 again
use iliberty to exit recovery mode
Viola!
I tried for days to get 114 to work, you must use dfu mode.
--
Since 258 wont goto a PSOD for me I had to use 274 for DFU mode
On the first step, if you hold the power too long or too short, it will goto recovery, you MUST restore to a bootable PSOD and try again to get into DFU mode
Tools and alternate method from
http://command-interactive.com/iPhone/guides/2.0beta/downgrade
Thanks AlJaMa and kIREmK