Following up on the iPhone 1.1.1 jailbreak, iPhone SIMfree--they are the commercial unlock folks--have announced a 1.1.1 upgrade and a 1.1.1 unlock solution. Moreover, they believe their unlock solution will restore and repair iBricks: "This now means that SimFree v1.6 release, is now capable of completely restoring/repairing software unlocked "bricked" iPhone". TUAW has not had the opportunity to try this out ourselves, so for now we're just passing along the link to the iPSF site. Let us know in the comments if you were able to unbrick and/or update to 1.1.1.iPhoneSIMFree is available from various vendors around the world and costs about US$60-$100.
Update: TUAW Reader Matthew Fliegle writes: I am on AT&T, and I installed the IPSF 2.6 using WiNstaller (on 1.0.2 with 4.01bb). It took about five minutes with no error messages. Then I restarted the phone and a error popped up saying invalid sim. I connected it to iTunes and clicked update. That took another 5 to 10 minutes, and then it made me reactivate it with AT&T. The only thing bad is that it made me renew my contract for another 2 years, but I called AT&T and they said I shouldn't have had to renew it and they were putting it under review.