"DOOZY OF A PROBLEM NO ONE CAN SOLVE" WITH MY IPHONE! CAN NOT BE RESET!!!!

I was just doing a sync with my MAC, and the MAC asked me if I wanted to upgrade to the newest version of the software, which was 2.2. I clicked YES, and it proceeded to do the upgrade. While it was doing this it stopped, and showed an error message saying, "Can not proceed with upgrade due to error 1602!" Well that was it. The IPhone just remained with a picture of a USB connector going into a logo of an ITunes symbol. So my next step, right or wrong, was to reset the IPhone with a hard reset. Tried holding down Home and top button and it would not work. Apple logo came back with same picture described above. So now I figure, time to really play hard ball, and do a software HARD RESTORE. So I hit the RESTORE button. After that The IPhone gives me the message, "Your IPhone can not be restored"!
So now, I can't even turn off the phone. It keeps turning itself off and on, and all I see are the graphics as I told you earlier!
HELP----HELP----HELP----HELP---Does anyone have a suggestion?????
Does this phone have to be sent back to Apple? This is the second phone I have received from them, as my last IPhone was defective!
THANKS EVERYONE for the help!
Dennis

HI,
THANKS SO MUCH FOR THE LINK! All it took was restarting my G5 and redoing the RESTORE with the IPhone! FINALLY, it worked! What a nightmare. Until I restarted the MAC and redid the RESTORE, absolutely nothing would work. Apple Techs told me about new user, etc, but until I restarted the G5 nothing would do it. Now the IPhone seems fine. What a nightmare there for a while. Oh yes, the software update was 2.02, it was just a typo in my haste to get the post up, thank you.
A big thank you to everyone who helped! Now if you an only tell me why I hear what sounds like water rushing periodically on my G5 and my MAC Book! Never had that before!
THANKS AGAIN EVERYONE!!

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