Well after an apparently incompetent Apple employee told me there was nothing that could be done for the bricked iPhone 4, that the "stressful" task of loading iOS 5 damaged my hardware and there was no hope and that I should buy a new one, I managed to get it working! No this was not just a case of me being impatient, I tried last night to restore and the phone stopped midway, screen went white and the vibration motor turned on and stayed that way.
So here is how I managed to get it working:
(proceed at your own peril, this may make it worse, then again, its already bricked right?)
1. Follow youtube instructions for diconnecting the iPhone 4 battery.
2. Wait, let the phone cool, you may want to leave it in the basement or garage or something that will drop its temperature below room temperature. I left mine overnight battery diconnected in a cool room.
3. Reconnect battery. Quickly do the next step.
4. Restore iPhone.
The thing I noticed in the 20 or so times I tried restoring is that the more I tried (consecutively) the less progress was accomplished - thats what lead me to believe that some faulty hardware was causing an overheat which prompted the hardware to reboot and halt the restore process causing the multitude of errors. Worked for me, unbricked iPhone. I still feel Apple should warn or provide some diagnostics at very least at the "Genius" bar.