Jeff, that makes 2 of us being skiddish about iRecovery method.
As promised on this thread earlier, I got my support call from Apple today, and here is what happened. We walked through the Diagnostics tool in iTunes, which generated a file that I had to send to them. They took about an hour to meet and confer and came back to tell me that this is, indeed, a new error for Apple. They told me they have just started getting these called in. I told them that others are starting to get it, as evidenced by this thread. They couldn't see anything obvious in the diagnostics file, so they want to swap out my iPhone and figure it out. They are shipping me a new one and I am cross-shipping them mine, which is 8 months old now. We shall see what they find. They did tell me that they do not recommend the iRecovery fix because it is not Apple software, which is understandable. I'm glad I did not jailbreak my phone, but jailbreaking it is obviously not the cause of this particular problem. I don't know if I will hear from them again, but at least I'll have a new iPhone to continue my life... couldn't live without it, that's for sure!