As speculated on the last episode 1.1.2 - did hit the Apple Servers today.

Here is a good article on Endgadget that gets into the details.

But a quick summary is this - Do not Update to 1.1.2 if you have any desire for native apps as it does fix the Tiff exploit that is needed for jailbreakme to work.

Even if you have no intentions of jailbreaking your iPhone, I would still recommend waiting a week of two before updating.

Let me know your experiences with 1.1.2 if you did actually update it.