HUGE 2.0 software problems on both a 1st gen iPhone and new 3g TWO BRICKS

So I waited in line for several hours for the new 3G yesterday like most people get it home and it had the occasional random program crashes etc. No big deal par for the course for being first on the block with a new device - even a Apple product.
My headache started with turning my "old" 1st Gen 16gb phone into a iPod. I installed the 2.0 software through iTunes and all went well until I was testing it out and it restarted. Weird since it gave no problems before. No big deal since I could go back to iTunes and restore it right?
Wrong.
Dead wrong.
It will not get beyond the Apple logo restart screen (yes I left it alone - even over night). I tried different computers, restarting the computer and iTunes. Also tried reinstalling iTunes - nothing works. Okay no big deal since it just going to be my extra iPod.
EXCEPT A HOUR LATER MY 3G IPHONE STARTED DOING THE SAME THING!!!!
Now I have two 16gb iPhones that will not restart or restore - AND NO CELL PHONE SERVICE.
Very, very frustrating. Even as a huge Apple fan I can't recommend this product until it's bit more fully developed.
Now waiting for technical support for well over a hour . . . Thank god I didn't go ahead and cancel my home phone like I have been meaning to.
Any one out there have any ideas?

It looks like a 3rd party application might be the problem.
The good news is tech support got me back on track. The secret? Power down the iPhone, then press and hold down the home button while connecting it to the computer with iTunes up and running. This will get you to the recovery screen. You should be able to then restore the phone. I would say be wary of some of the applications out there.

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