Before following these instructions you should have already restored your iPhone to 1.1.4 using iTunes. You should have the iPhone connected to your dock/computer and iTunes should have detected the iPhone after restore at least one once!
Download iLiberty+ 1.2 from here or here to your desktop.
Double click the downloaded file (iLibertySetup_184.108.40.206.exe) on your desktop to launch the install program.
Click the Next button to begin installation.
Select the location to install iLiberty+ in and click the Next button.
Enter a name for the iLiberty+ Start Menu Folder and click the Nextbutton.
Check the box if you would like to add a iLiberty+ icon to your desktop then click the Next button.
Finally, click the Install button.
Once installation is complete you will be given the option to launch iLiberty+. Check the box next to Launch iLiberty+ then click the Finish button.
iLiberty+ will open onto the standard tab.
Check the operations you would like to perform. If you are unlocking you would most likely choose all 5 options!
Click to select the Payloads tab. From here you can select additional payloads to install while unlocking or jailbreaking. We will leave this alone for now and go back to the Standard tab. Note***: A tutorial on how to download and install payloads will be posted in the near future.
Click the Go for it! button from the Standard Tab to begin.
Next I got a message that asked me to disconnect then reconnect my iPhone and click the OK button.
You will then notice a status bar appear. Unfortunately, mine only displayed until around 13% and then disappeared. No worries though, the unlock procedure continued and finished successfully. I was not notified that it did by the software. Just watch your iPhone until it comes to rest at the "Slide to unlock" screen. On the botton left corner of the screen it will tell you whats going on. Just give it time..don't rush..If you rushed then restore and do the process over again.
Thanks***: A lot of thanks go out to AViegas, George Zhu, Dev Team, and whomever else contributed to this release!