FWIW, this worked for me:
1. After getting the error, when it asked again if I wanted to resume restore, I cancelled.
2. Phone auto-synced from iTunes, which I allowed.
3. After sync, I unplugged phone from computer, did a hard shut down on phone (wait 30sec-1min), then rebooted.
4. I began the configuration set-up process from the phone, picking "install from iTunes backup" when prompted.
5. I reconnected my phone to computer.
6. I selected (again) the option to restore from backup.
This time it worked quite well. I'm wondering if having sync'ed all my apps to my phone already might have helped it shoot past the point where it was hanging on the restore; however that's mere speculation.
The one piece of advice I can firmly give is to cancel out of the restore when it pops back up after giving an error (-1), let your phone do it's thing, then start the restore again from the phone. Simply hitting the restore from backup button over and over as it repops seems to keep it in its error loop, as I tried doing that a good 50+ times with no luck....yet as soon as I cancelled and permitted the phone to sync before going through the process, it worked like a charm.
Let me know if this works for others, so we can flag it appropriately if so.