Be more specific in what goes wrong; error messages and such, otherwise we can't help.
Try to go for 5.1.1 the 208 version, its the latest.
To go to 5.01 you need your SHSH and the APTicket and stich those to the NO_BB firmware, if you do want to go that way make the NO_BB ipsw first than stitch the SHSH/APTicket to a second custom IPSW.
Make sure you have your host file pointing to apple again instead of cydia.
TSS server doent work anymore, leave that alone.
Make sure you are in DFU-mode, black screen not showing anything, you can also try to go to pwned DFU-mode with redsn0w.
Thank you so much TriJetHero, here's what I did:
1. Downloaded 5.1.1 208 version for iPhone 4 GSM
2. Created custom IPSW with redsn0w 0.9.13dev3 (is this a good version or I should use 0.9.14b2?)
3. Put my phone into Pwned DFU with redsn0w (I did save my SHSH/APTicket with redsn0w at this point with SHSH/Fetch)
4. Open iTune (Mac version 10.6.3 (25)) and hold "alt/option" key then click Restore
5. Select the NO_BB IPSW created based on the 5.1.1 208 IPSW
6. iTune finished extracting, then go to verifying iphone restore
7. Pop-up shows up saying "The iPhone "iPhone" could not be restored. This device isn't eligible for the requested build."
Now I downloaded back 5.0.1 IPSW, made a custom NO_BB IPSW out of it and stitched with my saved SHSH blob. Should I use iTune to restore it back to 5.0.1 first then try to upgrade to 5.1.1 again?
Yesterday night I am so frustrated that I downloaded back redsn0w 0.9.10b1. There I use the Select IPSW button to select stock 5.0.1, then select "Recovery Fix" in hoping to kick my phone out of recovery. redsn0w finished and said the remaining process will run on phone. Then I see a list of white text and the process hung. No I worried that I have already messed out my phone, did I do anything wrong, please please help! Thank you very very much!
UPDATE: I just stitched my saved SHSH Blob with the NO_BB 5.0.1 custom IPSW and restore my phone with iTune. The restore was successful and I am now back to 5.0.1 with baseband preserved (still 01.59.00
Now I just need to upgrade it to NO_BB 5.1.1. But I am back to the same loop above with the same error. Any thought or help on what may have gone wrong?
Strangely now my signal bar always shows with just one bar after restoring to the stitched NO_BB 5.0.1. Is there something wrong also?
Also don't want to hijack this, please let me know if I should open a new thread for this discussion. Thanks.