Hey JimHdk - Thanks for asking...
It takes me to the following site - but with no number specified in the error it is hard to troubleshoot. I've done the basics of resetting etc..
http://support.apple.com/kb/TS1275
Based on the listing of errors (each of which I had to go through) the closest error description was the very last... but I don't think this is the problem... what do you think?
Error 40265xxxx: Errors of the 40265xxxx range generally occur during the restore-from-a-backup phase, after iOS has been installed on the device. Restoring the device and setting up as new can resolve the issue. Before restoring as new, take steps to preserve the previous backups created by iTunes, such as copying the contents of the Backup directory onto the desktop. See iPhone and iPod touch: About backups to learn where backups are stored for your computer's operating system and additional precautionary notes regarding setting up as new. The backups created by iTunes store data such as your SMS, Favorites, Bookmarks, and other app data.