Have tried everything on here ...
http://support.apple.com/kb/HT1808 Still just got the "connect to" screen.
Can anyone out there tell me where to turn. Thanks
THis will get you back up and running on the old OS until you can get to the Apple store for the 3.0 upgrade
Close iTunes and unplug iphone
Search web and download the 2.2.1 ipsw file.
Go to device manager on PC and delete the USB option for Apple under the hardware options.
Reboot PC
Plug in iphone and wait for dreaded connection picture
hold power button and home button until apple logo appears
continue to hold home button and release power button until connection picture appears again
Your PC should now find the iphone in recovery mode
Now open iTunes and it will prompt you to restore
Hold the shift button on the keyboard and click the restore button at the same time
This will allow you to browse for the correct ipsw file
select the 2.2.1 file that you downloaded
your iphone will now restore
Once completed, you will need to resync
Now you are back to square one but at least have a phone that works
Now make an appt at the Genius Bar and make them update it for you
Mine is scheduled for next week