Ok, this process is actually very easy now. Go to
www.zibri.org and download the GUI version of ZiPhone 2.3. Launch the .exe and tell it where to unzip. The program will launch. Now, if you have a legit contract, make sure you activate iPhone in iTunes first, then check the box next to jailbreak and click Free my phone! If you need to unlock your iPhone check the boxes next to activate, jailbreak, and unlock, then click Free my phone! That is it! Then you will have an unlocked jailbroken 1.1.3 iPhone!
Hope this helps,
DJ McG