Is it frowned upon to release your software with a version number high than 1?
For example, some non tech-savy people might see a competitor's product with a higher version number as meaning my software is not as good.
I believe there are 3 major ways people market product versions:
I actuall prefer the release year as part of the versioning strategy, it lets your customers know what the latest version of a product is, general age of the release and using the 2008.1 type of number, you know the release is a revision (i.e. Service Pack).
If you still decide to go with a version number, I see no harm in starting with 1.1, that is what we always did at my old place of employ...