You don't have to update to the latest firmware. You simply hold down the left shift key and then click restore and a window should open asking where the file that you want to restore from is. locate and select it and you should be good to go.
That being said, Make sure that even restoring to the same firmware will not "brick" the phone. you may have to "unlock" it again.
Also, just as a word of advice, if you don't know what you are installing, or what it is for, do a little research first. I didn't install Erica's utilities because I have no need for anything they do from a command line. That's not saying that Erica isn't Brilliant (as all the individuals that make programs for the iPhone are), just that there is no need for me to have something like that.
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