Itunes says "restoring iphone apps" as soon as I connect my phone to the computer after ios 5 update

So I've downloaded ios5. And itunes just gets stuck at "restoring iphone apps".
even if I close itunes (which I can only do with the task mananger) and then reboot it, as soon as I connect the phone it says "restoring iphone apps" again and just gets stuck at that. So I cannot access anything on there.
Doesn't help that I now can't even use my phone at all as it keeps telling me I can't use the e-mail address that I have registered as it's already in use!!!!!
So I now have a phone that I cannot use at all! An I can't restore on itunes because it gets stuck in that loop if I plug it in!

The same happened to me. While it's restoring apps, you will be able to set up your ipod with iOS5. You can do that without disconnecting it from your computer. It will take quite a long time but it will go from restoring ipod apps, to restore music, videos and pictures. Be patient and it will finish the process in a few hours.

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