Ios4.01 iPhone 4 forced to restore. Now stuck

I tried to update my iPhone 4 to 4.01. I synced phone first to create a solid backup as I have for all software updates on all previous gen iPhones. I downloaded the new iTunes update. Started the update and it was going smoothly. Then froze. I check and iTunes had a (not responding) message. So I had to restart and it forced the phone into restore. Have made three attempts. Talked to apple and the guy had no clue what else to do. Appt at genius tomorrow. Any other suggestions?

Marsters,
I had the exact same problem as you an hour later, around 10:45 EST - called tech support and they couldn't help - told me to disconnect and attempt a restore - but kept on getting stuck in what looks like the same place as you. I think it had something to do with the new version of iTunes released today, though I'm not sure. What finally worked for me was restarting my computer (I had not done that after updating iTunes) and deleting the iphone update from my computer and re-downloading it. I had attempted the update, which downloaded the update before I restarted my computer.
On a Mac the iphone software is located at:
/users/username/iTunes/iPhone Software Updates/
and you want to delete:
iPhone3,14.0.1_8A306Restore.ipsw
This will cause iTunes to re-download the update when you click restore, and hopefully like me, the install should go smoothly.
Best of luck,
Gerry

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