Ok, let me explain it a little differently.
You downgraded from 1.1.2. to 1.1.1
You Jailbroke it.
Now you need to install OkToPrep from the installer
Then Upgrade BACK to 1.1.2 and then from the 1.1.2 Jailbreak.zip ( make sure you have this downloaded and unzipped before doing anything), run the windows.bat ( if you are on windows) or the other one for Mac - view the Read me file for the right one.
Because you initially updated to 1.1.2, your baseband is configured differently than that of a normal 1.1.1 phone. So when you downgraded, the phone can no longer communicate with the AT&T network. You have to go back up to 1.1.2 for the phone to activate on the AT&T network again, hence the instructions I gave above so you can be jailbroken on the 1.1.2 firmware.
There is a way to downgrade the baseband, but I don't know how, and personally would not recommend.
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Hawk Pettengill
I gotta iPhone
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