4.2.1 update downloaded to my imac,but has put my iphone in recovery mode!!

Hi,as the title suggests yesterday I downloaded update 4.2 to my imac and when it finished downloading I got the message,"itunes detects an iphone in recovery mode.You must restore the iphone to be compatible with itunes." So I clicked on the restore icon and after a couple of minutes I get the same message about being in recovery mode.
I've been on the support site but nothing,checked out a couple other sites aswell,downloaded Recboot,iRecovery,tried on another computer to restore,but nothing is happening.
Love my apple products,but so p#####d off that when something goes wrong it's a nightmare.
Please can anyone give any advice that I haven't already tried.
Cheers

What happens when you try to restore, does it give you an error?
I had a similar problem. Went to update from 4.1 to 4.2(.1) and every time it failed and left my iPhone stuck in recovery mode. Usually it failed with the error 1013 or 1004 - which according to Apple are hardware issues. THEY ARE NOT.
There is a simple fix for this: If you are on a windows PC:
goto:
C:\windows\system32\drivers\ect\
and if there is a file called: hosts.umbrella (or something very similar) then delete it.
There should also be a file called: hosts (or something very similar) - Open that with your favorite text editor and remove any line which has: apple.com
Then save the file, restart your PC and begin the update again, all should work fine.

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