The normal upgrade procedure started and I went about my browsing during the install.  It seemed to take a bit longer (probably adding the framework for the SDK) and it rebooted as usual.

I noticed the signal was low when I unlocked the keypad and the signal didn’t get better (I usually have 3 bars or so).   So I went ahead and rebooted the phone again and it came up to this screen…

I went ahead and connected it, it synced successfully, but STILL came back to this screen every time.  Then I took out and reseated the SIM card…………… Nothing.

CONCLUSION:

I was getting ready to call Apple Support, then I realized that before I started the update,  the Apple Update asked me to update iTunes and a Leopard Graphics fix… After updating iTunes, rebooting, then syncing the phone with the NEW version, it kicked right in and activated it.

MAKE SURE YOU UPDATE iTUNES TO THE LATEST BEFORE UPDATING TO 1.1.4!

Disclaimer:  I did originally have a Jailbroken 1.1.1 then went to 1.1.3, before reverting back to 1.1.2 (Jailbroken) and then back to 1.1.3 full to get the new features.  So, I’m not sure if this could have caused any of this.  Since it is fixed now, I figured it was NOT the cause.