IPhone 2.0.2 upgrade crashes

My new iPhone was fine but now has crashed with the upgrade. The upgrade was hung up with a message stating verifying iphone software that appears in iTunes. I then tried a restore but that has the same result. Now the only thing I see on my iPhone is a screen showing how to connect via USB to iTunes. How can I get out of this restore jam and get it working again?

When update 2.0.1 came out it help the delays in the keyboard coming up and the delay in responding to keys once pushes. Now the delays are back since using update 2.0.2.
Even though I had very few bars most of the time prior to update 2.0.2, my reception was pretty good. It has gotten significantly worse since update 2.0.2. including dropping calls now. Also, my phone has frozen and had to reset 3 times while using software I got from the apple store, only since installing update 2.0.2.
And of course the famous bluetooth echo is still there, so bluetooth is still not even usable.
TALK ABOUT DROPPING THE BALL!!! COME ON APPLE, THIS IS REDICULOUS AND TREMENDOUS SIGN OF INCOMPETENCE. I AM SURPRISED AND DISSAPPOINTED!
When working correctly, I love the phone. It is a great achievement. I just hope you all get it right on these updates sometime VERY soon.

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