You will need to first upgrade from OME 1.0.1 to OME 1.1.0.6063.
After the upgrade is successful, re-dscover all the devices.
Then install OME 1.1.1 patch 1.
Please make sure to backup your DB prior to upgrading from OME 1.0.1 to 1.1.0.6063.
For "Service Unavailable" issue, can you check if the following services are up and running on the OME server (Start->Run->services.msc):
World Wide Web Publishing Service (IIS Web Server)
Thanks,
Raj Shresta