iNdependence has been updated to activate, jailbreak, and unlock the 1.1.4 iPhone firmware. Its unlock uses the gunlock method thus downgrading you to the 04.02.13_G baseband. If you are on a 4.6 BL this is necessary. Otherwise I would suggest following our tutorial for unlocking 1.1.4 on the 3.9BL.
v1.4 beta 5 - 02/27/08 - Added SIM unlocking on firmware 1.1.4 (using gunlock) - Changed the SIM unlock warning to reflect new information with regard to IPSF-based unlocking - Made it so that iNdependence automatically removes old versions of the RAM disks it creates - Changed the credits for the RAM disk jailbreak method - Updated the documentation for the new SSH removal dialog