IPhone 4 update - stuck in recovery mode following unsuccessful restore.

Hello,
I was wondering if anyone can help me with my 'problem'?!
I have recently tried to download the latest available software update for my iPhone 4 and unfortunately my laptop power cable was disconnected before the update had completed. As a result I was unable to switch on my iPhone, so I immediately restarted my laptop and connected my iPhone in order to recommence the update. However, when I connected the device to my laptop I found that my iPhone was no longer recognized by my iTunes and a pop up box stating that: 'iTunes had detected an iPhone in recovery mode' and that the phone 'had to be restored' had appeared.
As I was unable to turn on my iPhone and, by this time, the iPhone was stuck constantly advising me to connect to iTunes, I decided to restore the phone as advised. I clicked the OK button and then the restore button at which point the error message stating the phone could not be updated due to 'unknown error 1604'. After several attempts I managed to get the phone to start and complete the restore process. Upon completion the phone is still not recognized and still stuck constantly telling me to connect to iTunes. I am able to start and complete the restore process again without error 1604 but at the end of the restore the problem persists.
Has anybody had the same or similar issue??
Any assistance will be appreciated.
Cheers

Apple recommends to Restore, get Error 1604 leave iPhone connected, Quit iTunes, Restart iTunes, Restore again, fixed. Error 1604 try a different USB port or different computer. Some say Error 1604 is due to bad IPSW file, delete IPSW from computer, and install new file with iTunes or manually.
Here are Apple instructions   http://support.apple.com/kb/TS3694#error1604

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