4S won't activate after iOS 5.1 update

Updated yesterday.
Update finished but my iphone 4s keeps asking me for configuration and won't activate.
I select the wireless network. Connection is fine. Even SIM unlock happens.
It says it is OK to use it now. I click on it and it returns back to configure screen again.
It is in a loop.
Configure-You can use it-Configure-You can use it-Configure and on and on.
I restored the iphone using iTunes but no lock. If I restore it from backup or icloud backup the situation is the same.
If I set it up as new iphone I can open it but this time I loose everything.
I have backups but I cannot use the phone if I install them.
This is really frustrating.
Can I get back to 5.01 somehow. I want to use my phone and I don't want to lose my data.
Any ideas?
Thank you.

The backup you have does matter (icloud or itunes. The moment you restore from it, you are in the loop. I don't know if Siri has anything to do with it or not but mine was off.
I talked to Apple for 50 minutes. We tried many things, no joy. The last words were that there were more people like us and if the number were enough Apple would develop and publish an update. What they suggested is to wait until the update is released, install the update and then make the restore from backup. It would work then.
Please call Apple and create a case. We need numbers.
I hope they take us seriously and correct this grave mistake as soon as possible.
For those who have iCloud backup, the following works:
Set the phone up as new device.
Go to Settings and iCloud.
Enter your iCloud account.
It will ask if you would like to merge.
If you say yes, you could at least get your contacts back.

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