Help! Can I re-virginize an iPhone which was not unlocked- just activated/jailbroken?

[zub3qin]

I have an iPhone that is activated with Independence and is running 1.1.1- never used as a phone.

I never unlocked it.

It also jailbroken.

I want to restore it to a factory state so it can be used on AT&T like it was fresh out of the box.

How do i do this?
Is it as simple as upgrading to 1.1.4 like iTunes asks me to? Then is the phone back to a factory state?

 

[amemoryoncelost]

I've heard that you go to 1.1.4, then 1.1.3 and then back to 1.1.4