JEsTer's iPhone Information

Few things to try:

1) Make sure you have a valid WiFi connection and an IP Address, try surfing in Safari to see if you get a page
2) Settings -> General -> Reset -> Reset Network Settings
3) Clear the Queue in Installer
4) Refresh your sources
5) Remove all sources manually from Sources -> Edit. *I don't think it allows you to but be sure not to remove AppTapp Official source!*
6) Reinstall sources; community sources, etc. from Install -> Sources. Refresh Sources
7) (***1.1.3 specific***) If you can ssh into the phone cd /Applications

chmod +s Installer.app/Installer
chown -R root:wheel Installer.app

8) Be patient the sources maybe busy.

If it's still not happening maybe try this (***1.1.3 specific***):

1. Download WinSCP for Windows or Fugu for OS X
2. Connect to your iPhone via SSH with above tool
3. Download Installer.zip and put it in the /Applications/ directory of your iPhone.
4. Download Putty for Windows or use Terminal in OS X
5. Connect to your iPhone via SSH with the above tool
6. See Below

cd /
cd Applications/
rm -rf Installer.app
unzip Installer.zip
chmod +s Installer.app/Installer
chown -R root:wheel Installer.app
rm Installer.zip

7. Exit tool and restart phone. You may have to update installer and such.
9) If that doesn't work, restore the phone. Put into DFU mode, Itunes Restore to 1.1.3, Run Ziphone.

thank you eastyboy for this reference material.

There is a difference between DFU and Restore mode.
While most people don't know it, this difference causes the "Error (1)" in iTunes.

DFU mode doesn't boot up the "mac os" on iPhone - therefore it doesn't communicate with iTunes "as much" as in Restore mode and iTunes can't decide to interrupt when Restoring Firmware.

How to put the iPhone into DFU:

1. Connect iPhone to Mac/PC - keep iTunes open
2. Hold down power and home button until the iPhone turns off. (some people say for 10 seconds)
   
3. When the screen goes black, wait ~1 second more and release the power button, continue holding the home button. (at this point the screen should stay black until it is recognized by iTunes. at no time should you see the yellow triangle or logo & cable screen, if it appears, you took too long to release the power button & try again)
4. iTunes should then prompt that there's an iPhone connected in "restore mode" - but it's different!

Alternative method is to use Ziphone -D (Uppercase D).
reference: http://www.hackint0sh.org/forum/showpost.php?p=206801&postcount=1

Many people wonder if they should downgrade their 4.6 bootloader to 3.9 bootloader. Thanks to ZiPhone this is incredibly easy, and probably pretty tempting for everyone. However, I'd like to make people aware of the facts, as I see them, any advantages / disadvantages. Here is some information I got from geeb on the #ziphone channel. (server: irc.iphone-elite.org)

* You can unlock the 04.03.13 baseband on 3.9bl. This means you can have a 1.1.3 unlocked phone with Google Locator working.
* In 4.6 they made a change to the format of the secpacks. This means that all older secpacks (older than 1.1.3) will not validate on 4.6 - so only the 1.1.3 secpack currently validates on 4.6
* 4.6 requires a secpack of a newer version to let you do things with the baseband (that is, without our exploits). 3.9 requires the same version OR newer.

Many people think that if you have a 4.6bl phone, you must downgrade the bootloader in order to unlock it. This is untrue, the 1.1.3 baseband simply cannot be unlocked at this time if you have 4.6bl. When you go through the unlocking process you will end up with 1.1.3 firmware and 1.1.2 baseband (04.02.13_G). With this setup, the only thing that won't be working is Google Locator, but there is a workaround to make it work...kinda. This can be achieved by running navizon or LocateMe from installer at every reboot.

Also, at this time, there is no way to upgrade your bootloader back to 4.6. That means if for some reason you need warranty services, you will be far from OTB (out of the box) status. Whereas, all other things you do to your phone, excluding hardware work or course, can generally be undone in one way or another bringing you at least close to an OTB state.

So as I see it, the advantage of downgrading your bootloader is to make Google Locator work properly. I guess the real question is right now, how important is a properly working Google Locator to you?