MMS Update from 3.1 - Unable To Restore Error - Phone Dead.

Ok, I just tried to do the MMS update from 3.1 and now when I plug it in it says that it needs to be restored and all data will be lost. Before trying to do the MMS update downloaded latest iTunes, then plugged in the phone and did the download and update. Now I try to do the restore but it errors before complete every time.
What do I do know got to have this thing working and I readlly don't want toose all my data?

I had the same issue. I have a 16GB 3G. I tried everything Apple suggested and then some. I had to download the 3.0.1 firmware and restore from that. I even took it to the Apple store after I put 3.0.1 back on and they had the same problem. My phone is out of warranty, so my only options are pay Apple for a new phone or live with 3.0.1 without being able to upgrade. This is the option that I chose. If your phone is under warranty, take it to Apple, they will replace it. I would not suggest restoring the firmware if you are still under warranty.
If you choose to restore using 3.0.1, just download the firmware from the internet and then hold the Shift key while clicking on the Restore button in iTunes. That worked for me so that at least my phone is working and is no longer in paper weight mode.
Sorry, I wish I had better news, but at least that will get you up and running again. I have noticed that the hard reset has worked for some people on here, (hold down the home and sleep buttons for about 10 seconds or so) but that would not work with my phone. I tried everything. I tried the update on four different computers both Mac and Windows. (Make that 5, the Apple store was #5). I tried completely uninstalling and reinstalling iTunes on two of the computers. I tried using an old version of iTunes as well as the updated version of iTunes. I tried everything, the only thing that worked was going back to 3.0.1. There is actually a post on here that describes how to get MMS on 3.0.1 without upgrading to 3.1. Since my phone is out of warranty, I have nothing to lose.
Good luck...

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