IPhone totally dead; DO NOT update to 2.1 if you are on O2 in the UK

I have moved from happily using the phone on 2.0.2, and using Mail (MM) and Safari properly this afternoon to a total shutdown
Like most of you, I have waited eagerly to upgrade to 2.1. The moment I upgraded, within seconds of 'testing' the phone via sending a test email to myself at work, the signal bar went from the 'pretty new 3G' to No Signal. Since then, it has been going from either full signal 3G to No Signal. Safari and Mail has also gone from full functionality to no connection (even though it says full signal 3G on the phone). Voice services has gone from bad to now non-existent. Even with full signal 3G, I was not able to call out or receive calls.
I've been on the phone with 02 iPhone tech support and can confirm that they have not been briefed at all that today's the day for 2.1!! Through all matter of trouble shooting, they have no idea apart to say that it's probably my phone and it's definitely got to be the upgrade as it was working just minutes before
So... now I do not have an iPhone anymore....
Have tried resetting restoring, every other thing.... and am still trying...

My story.
We (my wife and me) have an Iphone 3G. After really being eager for the update (especially for battery stamina) I updated both Iphones with Itunes 8 because that was required. After the update both iphones where completely dead. So I tried the restore function in Itunes. After unpacking the software progression menu, the restoring was in progress. The restoring went to appoximately 2/3 of the progression menu and that collapsed... The message was something like "could not restore unknown error -6"
After restartin over and over again trying to reboot both mac and Iphones, trying reboot with option key.. I have done really everything (at that point I knew that was useless but still kept on trying)
My sollution was the following.... I released the connection form the iphones and plugged the USB cables into a HP laptop running windows XP. Downloaded itunes 8. Then itunes mentioned the update so I ran the update. After this it was really easy to bring back the Iphones back to life (THANK YOU MICROSOFT) of course both iphones now contained the standard installation stuff... (please note that installation will take up to 30 minutes for one Iphone)
After reanimating the iphone through my windows laptop I again connected the iphones to the Imac again. At this point the itunes in Imac asked to bring backup to the iphone.
And it all worked out fine...
I HOPE THIS WORKS OUT FOR ALL OF YOU..
After the Iphone plackout I tried to call Apple, their automated message directed me to the dutch telecom provide Tmobile. They where NOT prepared. The very nice guy on the telephone said "i will transfer you to our special Iphone service dept.... 10 seconds the guy came back that the Iphone department knew about the problem and I needed to bring the Iphones in for repair. I am a paying customer for two Iphones but aparrently I am not good enough to talk to...... I solved this problem while they pay people to bring me the solution that do not even want to talk to me....

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