i wasnt going to mess with downgrading and then having to jailbreak and take a chance of bricking it... but seeing how I have a 1.1.1, i am not too concerned and will probably jailbreak it as soon as I find software that I want to load
All iPhones of any firmware version, including out of box 1.1.2 can be jailbreaked. However, the value is having it sim-unlocked, which in your case will not be useful since you are on AT&T plan. Unless you plan on traveling.