restoring back to a fresh 1.1.1 will fix everything. it will be as if you never jailbroke it. you will be given the option to restore from the last time iTunes did a backup of your iPhone so you will retain your notes, texts, etc.
when it installs 1.1.1, iTunes will give you an error and your iPhone will tell you that it needs to be activated. this is normal. i got worried when it happened to me. i just quit iTunes and started it up again and i got to use the backup to get back my stuff.