Iphone stuck in recovery mode trying to update

I was attempting to update to the new ios 8. I did this all in the normal way as i usually do. When it got to the extracting software at the top of the itunes screen it took about 1 hour for this to nearly reach the end. then just before it reached the end it stopped and said it could not be restored as the iphone could not be found. now the iphone 5 is stuck in recovery mode and every time i connect it to itunes it says i need restore which i do and then the same thing keeps happening. it goes to extracting software bar for an hour and then stops just as it is about to finish.
i have a laptop with windows xp and have installed latest itunes, i have attempted rebooting everything with no joy.
please help.
iPhone 5, iOS 7.0.4

Follow exactly what I wrote below to fix iPhone stuck in recovery mode:
Hold both power button & home button for 10 seconds.
Once the device shuts off release the power button and keep holding the home button for 10 more seconds.
The screen will remain black, plug it up to iTunes and see if it detects it.
If that does not work hold both buttons to make device shut down, once screen is off hold the home button while plugging it up to PC.
Do not let go of home button till recovery screen shows up on your device.

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