2.0.1 Update has bricked my iPhone 3G!

Got the update popup - downloaded - during the preparation or install phase it errored out - I am now stuck with an iPhone that iTunes does not see. The iPhone screen shows a picture of a USB cable with an arrow pointing to an iTunes icon. I'm assuming that this means I'm supposed to connect it to iTunes. It would be nice if I could.
So now what? I only use this phone with one PC, my MacBook. There are no other backups other than on my MacBook, which won't recognize the phone. I guess I should make an appointment at a Genius bar....

no parallels or vmware
yes, quit and reopened itunes
no, have not tried new user account
however - I did reboot my MacBook - this did the trick as now iTunes recognizes that an attached iPhone is in 'recovery mode' and prompted me to restore it first. Restoration is underway. Wish me luck.

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