It sounds like you ran the AppTap installer on a 1.1.1 firmware which is a big no-no.
I did the same thing, jumped to that conclusion and my heart sunk as hours of work had gone.
You dont need to downgrade 1.1.1 anymore if this is a brand new, sealed virgin unit.
First thing I would do is connect to iTunes and restore the phone to 1.1.1.
Then follow the guide in Independance to activate and jailbreak it and install SSH.
http://code.google.com/p/independence/
You will then need to install AnySim 1.1
http://www.iphoneatlas.com/2007/10/1...or-installing/
Following that, you would like custom apps, you will need to MANUALLY install AppTapp onto your iPhone and then upgrade to the latest 3.0b4 Beta from the Installer icon on your iPhone.
http://www.iphoneatlas.com/2007/10/1...en-111-iphone/
The is customization, phone number formats, caller ID, EDGE settings etc.
The most important thing is THE WILL ONLY BE SUCCESSFUL IF THIS IS A VIRGIN PHONE.
Hope this helps.