Iphone update not successful and restore does not work

I tried to install the latest iphone update and received a message that it was unsuccessful and I had to restore my iphone. Now, restore is unsuccessful. My phone displays an image of a cable disconnected from itunes and CD. What next? I'm dead in the water.

I had the same "unknown error 2001" every time I tried to restore the iPhone. It would detect the unit immediately in "recovery mode" but fail to restore with that error.
Then I tried this:
"+Before the iPhone is detected, but whilst connected to the computer, press on the home button and keep it pressed down until a message appears to say that a phone has been detected in recovery mode, then follow the steps indicated. It may take about 30 seconds, so don't let go."+
As suggested above (thanks, you are a savior) and it worked. I also charged the unit from the AC (not usb) for a while and restarted the PC before trying the above mentioned method. Also, I connected directly to the USB port with the cable, avoiding the "hub" thingy that comes with the phone.
Thanks! and hope that helps...

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