I've been having similar problems. Yesterday afternoon, kept getting error 3200. Finally got past that and got stuck on "Restoring iPhone apps". That looped for well over an hour. Finally gave up and left for home. Phone worked and had some new features; safari worked but purchased apps did not (although the icons were present) and none of my music or videos were present.
Plugged it in first thing this morning and got the same message "Restoring iPhone apps". after about 20 minutes or so, I got a new error code, -34. Search for that turned up negative. But then when I clicked on my phone in iTunes, it indicated that it was backing up the phone and re-installing apps. Biggest concern now is that the capacity bar is telling me I'm now somehow 8.7 GB over capacity (originally it said 7!). Not sure what's up with that. I know Apple said the new iOS would require more space on the phone but more than half the memory on a 16 GB phone seems a trifle excessive!