This worked for me. You need a phone with BL 3.9. This is basically getting your firmware back to 1.0.2 and virginizing the baseband back to 03.14.08_G (the correct firmware for 1.0.2). From there you can jailbreak and add SSH and prepare your iPhone for update to either 1.1.1 or 1.1.2 using Independence. Then jailbreak and unlock 1.1.2 using Independence and AnySIM 1.2.1u, then you can fun the 1.1.3 soft update in the Installer to get back to 1.1.3 using the baseband from 1.1.2. It may require some patience but follow the instructions exactly and you should get a fully functional iPhone again.
Here is the link:
http://www.winandmac.com/mobile/ipho...-iphone-again/
I use Cyberduck instead of Fugu, but both do the same thing.