How to update an unlocked/jailbroken iPhone

If you have a jailbroken/unlocked iPhone, here’s how to update to the latest iPhone firmware (2.1) without losing your custom apps, contacts, photos, etc. etc.

http://sleepers.net/news/2008/09/19/how-to-upgrade-in-itunes/

I followed these instructions and it worked like a charm. The only thing I noticed was that after I did the restore, my apps were out of order, but no big deal.