vmware iphone update
My wife and I have independently encountered this systemwide bug this year.
If you allow iTunes to upgrade your iPhone software while VMware is running, VMware will hijack the iPhone connection mid-update and interrupt the update to your iPhone, leaving your iPhone in a non-working state. A full restore of your iPhone must be done. The restore operation will not succeed unless you close VMware first.
iTunes should specifically check if VMware is open before attempting to update iPhone software.
Relevant Specs:
Model Identifier: Macbook Pro5,1
Mac OS X: 10.6.6
VMware is running XP service pack 2