This worked for me and first I tried the iphuc downgrade method and it SUCKED and I couldn't get it to work. However, this way worked and I didn't have to even type one single command. First off, lemme just say I'm running 1.1.3 on my iPod with the software update pack and iTunes 7.6 when I did this. 1. Connect your iPod touch and let it show up in iTunes and finish syncing and make sure you've logged into the home screen. 2. Hold down POWER and HOME until the iPod disappears from the source list. 3. When the iPod disappears from the source list, you can let go of the POWER button but, KEEP holding the HOME button until the iPod pops back into the list in recovery mode. 4. Then you can go about your normal downgrade routine by holding down the OPTION key while clicking the "Restore" button and choose the 1.1.1 firmware. As I said earlier, no need for iPhuc and this was done using 1.1.3 and iTunes 7.6. I can't believe how hard this information was to find. By the way, this is NOT the normal restore way as it was in previous downgrades... that's when you get the unknown errors. I hope this works for all of you out there. It sure worked for me after many failed attempts at the so called "iphuc" method.