IOS6.1 crashes my iPhone 4S! Please help.

Hello,
I just updated my iPhone 4s to the latest iOS release 6.1. Before the upgrade, I completed a backup to my computer through iTunes. After the update finished downloading, it gave me an unknown error message. Now, my iphone shows a frozen screen showing the USB chord and an arrow towards the iTunes symbol indicating to plug it into iTunes. When I do, I get the following message:
"iTunes has detected an iPhone in recovery mode. You must restore this iPhone before it can be used with iTunes"
What the ****!? This should be tried and true before releasing to the public. So I need to restore my phone? It doesn't even give me the option to restore from a backup so I'm guessing I will need to first restore to factory settings and then restore to my backup? Will I have iOS6.1 at that point?
Has anybody else been experiencing similar problems? This is very annoying to me especially since Apple wants $20 just to talk to them on the phone. Please help if you can.
Thanks.

I am having the same issue - the problem is that there is no way to restore that I can find.  iTunes will not recognize my phone, and the phone just has the icon on it that tells me to plug into iTunes.
Any constructive suggestions would be helpful.  I have no phone.  Thank you!

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