ITunes could not connect... because it is locked with a passcode

_+The Error:+_
iTunes could not connect to the iPhone "t3l01v's iPhone" because it is locked with a passcode. You must enter your passcode on the iPhone before it can be used with iTunes.
_+The Issue+_
I just installed the 3.0 software. The iTunes store was not available to activate my phone right away, which is normal, considering the 3.0 just came out. I have an Exchange email account configured on the phone which requires me to have a passcode set.
I can't enter my passcode because the phone is stuck on a display that says "Slide for Emergency" and is asking to connect to iTunes.
Pretty bad catch22 if you ask me. Can anyone help?

I had the exact same problem, I freaked out at first and then it worked fine. I got the error in iTunes, I check my phone and it was at the slide to emergency thing. I disconnected my iPhone, put in the passcode, and then all of a sudden the error message went away and it worked fine.

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