IPhone 2.0 update- NEED HELP PLEASE

i downloaded the new software and plugged my phone in to the computer while it uploaded on my phone. i went into the other room for a few seconds and when i came back it looked like the upload had finished but a notice had popped up. the notice closed by itself before i could finish reading it. the only thing i managed to read was to leave the phone connected. its been an hour since then and nothing has happend and when i press the home button its a picture of the white apple usb cord with an arrow pointing to the itunes icon. did i miss some imporatant instructions or does it just take a long time? please help :]

It takes a while, depending on how busy the server is.
The sign you missed said , basically, do not unplug the iphone when this process finishes your iphone will be recognized in itunes. After that, at some point, it connects to the server. Then after a while of that it restores the software on the iphone. Then everything looks like normal again.

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