IMac wont restart following 10.8.4 update - HELP!!

I updated Mountain Lion to 10.8.4 (together with iTunes 11.0.4) on my 2011 iMac and all seemed to go without a problem. However, following the restart I'm getting the grey screen with the Apple logo and the spinning fan below it --- forever (i.e. 30 mins before I tried the below). It won't progress beyond that.
Have tried booting in safe mode, but the bar at the botto passes and the same grey screen as above apears -- and stays there, spinning fan and all.
Next, I tried recovery Mode and did a permission and a disk repair, both of which ran without any issues. However, upon restart, I'm back to square 1 with the grey screen and the spinning fan!
Help! What could be the problem and how can I get the boot process to complete? Has anybody else seen prolonged boot cycles (if so, how long?) and did the Mac then boot up? Happy to let it run for a while, but suspect something else is wrong...
Any and all help is appreciated!!

You will have to reinstall OS X. If 10.8.4 is on the App Store site then that is the version you should get. Otherwise, it will be 10.8.3.
Reinstalling Lion/Mountain Lion Without Erasing the Drive
Boot to the Recovery HD: Restart the computer and after the chime press and hold down the COMMAND and R keys until the menu screen appears. Alternatively, restart the computer and after the chime press and hold down the OPTION key until the boot manager screen appears. Select the Recovery HD and click on the downward pointing arrow button.
Repair the Hard Drive and Permissions: Upon startup select Disk Utility from the main menu. Repair the Hard Drive and Permissions as follows.
When the recovery menu appears select Disk Utility. After DU loads select your hard drive entry (mfgr.'s ID and drive size) from the the left side list. In the DU status area you will see an entry for the S.M.A.R.T. status of the hard drive. If it does not say "Verified" then the hard drive is failing or failed. (SMART status is not reported on external Firewire or USB drives.) If the drive is "Verified" then select your OS X volume from the list on the left (sub-entry below the drive entry,) click on the First Aid tab, then click on the Repair Disk button. If DU reports any errors that have been fixed, then re-run Repair Disk until no errors are reported. If no errors are reported click on the Repair Permissions button. Wait until the operation completes, then quit DU and return to the main menu.
Reinstall Lion/Mountain Lion: Select Reinstall Lion/Mountain Lion and click on the Continue button.
Note: You will need an active Internet connection. I suggest using Ethernet if possible because it is three times faster than wireless.
If you end up with 10.8.3, then you can update by downloading and installing 10.8.4 Mountain Lion Update v10.8.4 (Combo).

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