I am having the same problem. I have tried many, many times to do the restore, and keep getting error messages that it could not complete restore. I don't know what else to do. I have searched apple's web site. The restore age says "If you are still unable to restore the iPhone using this method, check Apple support for further troubleshooting and/or service options." But I can't find any others. This is my only cell phone, so I am unreachable right now. How do we get help? Thanks!
All versions of the 2.0 upgrade from apple are total clusterbombs. Both of my phones have been totally jacked since attempting this upgrade, and many of the issues that occur once u are finally able to upgrade still exist after 2.1 update (see my other posts).
I had the same prob as u guys only in my case, it actually bricked a 6 month old $2000 dell notebook in the process and partially bricked my old dell desktop still running XP PRO (not to mention both of our iPhones). The only way I got around the prblem after literally days of research and calls to apple tech support was to try to sync a third time on a third computer - my work pc - and pray to Steve jobs that I didn't get caught, fired, or brick that machine as well. Dumb luck prevailed though I guess bcuz it worked just fine and I was no longer dead in the water with no phone at all.
-but of course by syncing with that computer, all of my contacts, data, music and photos were all lost thanks to apples policy of forcing sync whether u really want to or not.
So the moral of the story is, the only solution that I could find on apples website was to basically just keep installing their invasive software on other people's computers until eventually u come across one that gets lucky and actually works. Still can't believe that they literally suggest people do that on their website as a feasible solution to their software coding deficiencies, but hey I guess that's what we bottom feeders get for trying to use a 'superior software app designed for a superior operating platform' ie a freaking MAC on a far more inferior platform that they like to call WINDOWS!!!