Iphone in recovery mode after software update

Hello, I have just downloaded and upgraded my software on iphone 4.
It seemed to have taken about 2-3 hours.
There was an error (which I missed) and now I have on my phone the white apple sign, on my itunes it says - "Itunes has detected an iphone in recovery mode. You must restore this iphone before it can be used with itunes.
My only option on itunes is to restore to original settings, which Im guessing I will lose all my data etc?
Does anyone know of an alternative solution?
I have held down the home and power button but no luck.
Please help!

Try the steps:
How to perform a recovery-mode restore
If your iPhone, iPad, or iPod touch is already showing the "Connect to iTunes" screen, please go to step 5.
Connect your USB cable to your computer but not to the iPhone, iPad, or iPod touch until step 3.
Turn off the device: Press and hold the Sleep/Wake button for a few seconds until the red slider appears, then slide the slider. Wait for the device to turn off.If you cannot turn off the device using the slider, press and hold the Sleep/Wake and Home buttons at the same time. When the device turns off, release the Sleep/Wake and Home buttons.
While pressing and holding the Home button down, connect the USB cable to the iPhone, iPad, or iPod touch. The device should turn on.
Continue holding the Home button until you see the Connect to iTunes screen. When this screen appears, you can release the Home button:
Note: If the image of a battery appears, let the device charge for at least ten minutes to ensure that the battery has some charge, and then start with step 2 again. If you don't see the Connect to iTunes screen, try these steps 1 through 4 again.
iTunes should automatically open and display the following message:
"iTunes has detected an iPhone in recovery mode. You must restore this iPhone before it can be used with iTunes."
Note: If iTunes not open after two minutes, please open iTunes yourself.
Use iTunes to restore the device.
More info here: http://support.apple.com/kb/HT1808

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Try the steps:
How to perform a recovery-mode restore
If your iPhone, iPad, or iPod touch is already showing the "Connect to iTunes" screen, please go to step 5.
Connect your USB cable to your computer but not to the iPhone, iPad, or iPod touch until step 3.
Turn off the device: Press and hold the Sleep/Wake button for a few seconds until the red slider appears, then slide the slider. Wait for the device to turn off.If you cannot turn off the device using the slider, press and hold the Sleep/Wake and Home buttons at the same time. When the device turns off, release the Sleep/Wake and Home buttons.
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If your iPhone, iPad, or iPod touch is already showing the "Connect to iTunes" screen, please go to step 5.
Connect your USB cable to your computer but not to the iPhone, iPad, or iPod touch until step 3.
Turn off the device: Press and hold the Sleep/Wake button for a few seconds until the red slider appears, then slide the slider. Wait for the device to turn off.If you cannot turn off the device using the slider, press and hold the Sleep/Wake and Home buttons at the same time. When the device turns off, release the Sleep/Wake and Home buttons.
While pressing and holding the Home button down, connect the USB cable to the iPhone, iPad, or iPod touch. The device should turn on.
Continue holding the Home button until you see the Connect to iTunes screen. When this screen appears, you can release the Home button:
Note: If the image of a battery appears, let the device charge for at least ten minutes to ensure that the battery has some charge, and then start with step 2 again. If you don't see the Connect to iTunes screen, try these steps 1 through 4 again.
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Note: If iTunes not open after two minutes, please open iTunes yourself.
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1. Turn off device
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When your phone is in recovery mode, it's like it crashed. The only way that you can get it out of recovery mode is by restoring, and this erases all your data as well.
You can believe what you wish by "reading all over the internet". This is Apple's technical support forum. We do know what we're talking about.
since you have very important photos on your phone, why haven't you been importing them to your computer as soon as possible after taking them? This is how the phone is meant to be used. Keeping critical data on only a device which can be easily stolen, dropped and broken is just plain foolish. Also, did you not back up your phone (as you should be doing with any computer) before attempting any operating system update? As you've now just painfully learned, updates do not always go as planned.
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