I just found this from a link on Hackentosh.org. I havn't tested yet but by others words looks as simple as the new without a pc activation & unlock.

How To Re-Virginize your 1.0.2 unlocked phone so you can upgrade.


Warning: use at your own risk we will not be held responsible if you screw up your phone

Purpose:
This tutorial will explain how to take your 1.0.2 phone that has been unlocked using anySIM 1.0 - 1.0.2, iUnlock, iUnlock-fast or any similar means. The problem with these tools is that certain sections of the baseband get "damaged" by them. When you try to update to 1.1.1, your IMEI gets set to a 0049* number and your phone is not working. This guide will show you how to re-virginize your phone. When you are done with the guide, you will have a locked 1.0.2 baseband ready for unlocking or upgrading. This guide assumes you have a working 1.0.2 unlocked phone. Note: If you unlocked using Iphone SIM Free or anySIM 1.1, you do not need to run these steps.

Steps:
1. First, you need installer loaded. If you do not have this on your phone already, run apptappinstaller (windows) or here (Mac) with your phone attached to your PC.

2. Next, you need to get community sources installed in your installer. If you just completed step 1, installer will require you to upgrade before you can do this, so go ahead and upgrade to installer 3. In either case, install community sources if you haven't already.

3. Next we need to add BigBoss's installer repository. Close installer and open mobile safari. Type this URL: http://markmon.mine.nu:90/iphone/repo/repo.plist and agree to install the repository.

4. Return to installer and refresh sources. Now you need to install the following packages:

BSD Subsystem (System Category)
Term-VT100 (System category)
Virginize Scripts (Utilities category)
anySIM 1.1 (Utilities category) - only if you plan to unlock 1.0.2 afterwards. If you plan to upgrade to 1.1.1 immediately you can skip this.

5. Now exit installer and open up the Term VT100 on your phone. Type these two commands into the term:
cd /usr/bin
virginize

6. When the virginize script runs, you should not see any sort of (16) resource busy errors. If you do, stop the script, unload commcenter by running this:
launchctl unload -w /System/Library/LaunchDaemons/com.apple.CommCenter.plist
then restart the script.

7. When the sript completes you should be done and your phone will be locked once again. You can unlock your phone using anySIM 1.1 if you want or you can upgrade to 1.1.1 FW.

8. To run anySIM just tap the icon that we installed in step #4 above and follow the instructions on screen.

I did this method on Friday night, and it worked perfectly.

My iPhone is now 1.1.1, with iTunes store etc and all third party apps themes etc working just dandy!!

I was just looking & if one was to marry the jailbreak.com with this you have virtually pc free method of doing it all on the iPhone.

Awesome! This is too bloody easy these days...my first unlock too something like 3 hours of fucking around and now it can be done without a computer!

I am going to give this a whirl tomorrow night and combine it with the unlock without computer method also posted

Thanks for these mate!

I agree it is becomming all too easy. Apple better wave the white flag. At this rate of hacks in no time we will have another OS on offer for the iPhone.

Just did this...worked perfect for me and was soooo easy! Thank you!

I'm betting that the scene will all but stop if apple release decent devkits.

Yes I have also tried & my phone is virgin 1.0.2 baseband

So since I followed the directions I unlocked with anysim 1.1 which I got from bigboss It worked perfectly.

Now deciding if I should got to FW 1.1.1 and the best route. I have the FW which I got a few days ago.

I was shaking through the whole process thinking I will stuff the phone now

I like the process doing stuff on the phone seems to be more stable than doing over the wifi

After running the re-virgin process the key pad hack to make the voice mail button work stops. So I think this works on the baseband.

I do wonder if it can cause an issue, so I have not reapplied.