Same here. I re-ran the restore function several times on my laptop (my primary computer) - and had to end iTunes each time it got stuck. I repaired twice, shut down, tried different internet connections, and finally tried restoring on a different computer. That worked and I got the iPhone back to v1.1.4. I then had to re-sync on my laptop, and tried the 2.0 upgrade again. It froze at verfying the iPhone software AGAIN.
So I switch computers, restored to 1.1.4, and am now re-re-syncing on my laptop. Unless anyone has any suggestions, I don't think I'll be trying the upgrade again anytime soon. I was so looking forward to playing around with the apps 😟