Ugh, okay so this is what I've done so far:
1) Downloaded the firmware (iPhone1,2_2.0_5A347_Restore.ipsw). It downloaded as a zip file, and then proceeded to auto-unzip, so I had a folder -- iPhone1,2_2.
2) Tried Option-Clicking, to install on iTunes, couldn't find the ipsw file.
3) Read up that I needed to zip the folder back to a zip, and then rename an ispw.
4) Tried re-zipping the folder into iPhone1,2_2.ipsw and then iPhone1,2_2.0_5A347_Restore.ispw.
5) iTunes would not update from either ispw file.
6) Tried restoring directly to the file. Restore broke.
7) Reset the computer, disconnected/reconnected iPhone. Tried restoring again. Nope.
8) So I just restored the phone back to 1.1.4. Everything's as I last synced it last night (lost a couple texts, but not a big deal).
Any suggestions?