If you're having problems updating to 1.1.3, you'll have to do the following:
Update iTunes to the latest version. Reboot Reconnect iPhone and follow prompts.
You need iTunes 7.5 or later to install the iphone update, otherwise you'll get the 1603 or 1604 error message.
Let the hive mind of Engadget get that for you.
"I've found myself using my PC for a lot of conversations lately, and I'm also considering recording a podcast to share with anyone who will listen. There are tons of USB headset / microphones out there, and I'm hoping someone has some solid recommendations based on experience. I'll consider both headsets and standalone mics, by the way, but I'd like to keep the bill under $100 if possible. Help!"
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Update iTunes to the latest version.
Reboot
Reconnect iPhone and follow prompts.
You need iTunes 7.5 or later to install the iphone update, otherwise you'll get the 1603 or 1604 error message.