I had this exact problem. I have an original iPhone, plugged directly to my Power Mac. I installed the update (with the latest version of iTunes), and I got bricked! My phone was stuck on the connect to iTunes screen and iTunes wouldn't even recognize it. I tried several things I found all over the internet, including in these forums. After talking with a programmer friend, I went to the AT&T store to see about getting a new SIM card. That didn't work, so I made an appointment at the Apple store, thinking that surely, they'd just try to sell me a new iPhone. One of the first things the guy told me was that he probably wouldn't be able to do anything and that it would cost $200 for a replacement... which is silly since the new ones only cost $99, but I digress. So, he connected it to his computer, and voila! it worked again! I took it home, connected to my Power Mac once again, and restored my old data. I wish I could tell you the reasons why this worked for me, but I really have no idea. Good luck everyone! This is an incredibly frustrating ordeal!