As predicted, the iPhone 1.1.3 firmware update is not being a nice playmate for unlocked handsets, including European ones that were officially and legally unlocked by the carrier. Word is that this a glitch, however, and those who paid a premium to French carrier Orange for* une iPhone libre* can get back their full freedom with a little SIM card juggling.
As for those with unofficially unlocked iPhone,* hacker emptor* and get to work.
Some legally unlocked iPhones re-locked by iPhone 1.1.3; potential fix [iPhone Atlas]