For the jailbreakers, I'm sure you have read this message from iH8sn0w:
"iTunes 11.1 - WHAT IS THIS?! GO AWAY?!
Along with Apple pushing iOS 7, they updated iTunes to 11.1. This actually brought more headaches than convenience.
When a user hits the restore button, they often see "iTunes will erase and restore your iDevice to iOS x.x.x and will verify the restore with Apple". What this does is submit a request to Apple for an apticket + SHSH blobs. Previous revisions of the iTunes Mobile Device Library would just use the BuildManifest included inside of an IPSW to supply the request to Apple with the essential "hashes" of each image within the IPSW. When tools like sn0wbreeze, PwnageTool, seas0npass, or redsn0w modified images such as iBSS, iBEC, ramdisk to avoid signature checks during the restore, iTunes didn't care or know.
Now, prior to iTunes sending the TSS request to Apple, they ignore the values already in the BuildManifest and "re-hash" every image within the IPSW to create the TSS request. Meaning if 1 byte of any image is modified, when iTunes calculates the new "hash" and sends the TSS request, the TSS server will refuse to fulfill the request (Error 3194 is displayed). This essentially kills iOS 7 custom IPSW restores via iTunes.
Moving on to Error 11... This error seems to only be related to devices with basebands that require bbtickets (So basically the iPhone 4). Even though iFaith/sn0wbreeze removes the baseband requirement, iTunes 11.1 is expecting the iPhone 4 baseband firmware to be signed no matter what and notices that it isn't. This causes it to error out with code 11 (Error 11). It is worth noting that this issue was already present in the Mac OS MobileDevice framework on iTunes 11.0.x. When iTunes 11.1 was released for Windows, it looks like they finally merged code. Thus bringing the issue to Windows with iTunes 11.1. This does not affect the iPhone 3GS (bbfw is always pre-signed),
A temporary workaround to fixing Error 11 on Windows is by downgrading to iTunes 11.0.x. You can find download links to old revisions of iTunes over here (thanks cj!).
One more thing worth mentioning is iREB for the iPhone 2G, iPhone 3G, and iPod touch 1G is broken with the iTunes 11.1 update. This is on my list of things to fix, but again... a workaround is typed up above."
The person who wrote the post below in green is the one who shall take credit for this magnificent fix. I have taken it from another site because I thought it was just too good to not share with iPhoneForums so enjoy!
I know most people like myself have already updated to iTunes 11.1.x.x and would rather not be burdened with having to downgrade and have to redo their entire library. Well never fear, I is here
I've created a "FIX" for the issue which will replace the problematic files with files from iTunes v11.0.5.5 and will allow you to restore Custom IPSW's to your device using iTunes 11.1.x.x without getting Error 11 messages.
This fix was tested on iTunes v11.1.1.11 but will more than likely work with any newer versions of iTunes until of course Crapple changes something else. If you install this fix and it doesn't work for you then you can simply uninstall the fix and it will revert iTunes back to it's original state. So there is no harm in testing it with newer versions of iTunes.
This fix only needs to be applied to iTunes version greater than v11.1.0.0. The last good version of iTunes that doesn't have the "Error-11" issue is v11.0.5.5. You can either downgrade to iTunes v11.0.5.5 or simply apply this fix to your iTunes v11.1.x.x or higher to resolve the issue.
This fix works with both 32-bit and 64-bit versions of iTunes.
Simply download and extract the ZIP file in the link below and run the included EXE file. It's very straight forward and more info is included once you launch the FIX.
https://www.dropbox.com/s/v07hzfye8kn18s0/Custom_iPSW-FIX_iTunes_v11.1_Error-11_Fix_v1.3%20%281%29.zip
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