Phone Stuck In Recovery Mode

Like the idiot I am, I decided to upgrade the software of my iPhone to the 4.0 version. I first had to download the most recent version of iTunes...no problem there.
When I tried to download the new iPhone software everything froze up. It went through "Extracting Software" then "Verifying iPhone Restore With Apple" then "Preparing iPhone For Restore" and a bunch of other little screens. When it got to "Restoring iPhone Software" it froze...status bar on the computer got almost all the way to the end and the status bar on the iPhone got about 1/3 of the way across.
It stayed like that for about 10 hours. I unplugged the phone from the computer, shut it down, and when I turned it back on it has a photo of a USB and an arrow pointing to an iTunes thumbnail.
I plugged the phone back into iTunes and I got a message saying the phone is in "Recovery Mode" and it instructs me to do a "Restore." When I click the "Restore" button it goes through all the same stuff, with the same result...freezes up at the same place as it did before.
I've tried this about 8 times now with the same result. My iPhone is now unusable. Were I in the U.S. I would take it to the store and demand a refund (it's only about 5 days old). However, I'm in Afghanistan and so I can't do much about it.
Can anyone help me out? Is there any way I can get my phone working again...would be nice to be able to talk to my family again.
Thanks!

Ok so I fixed the problem. After receiving error 14 I went into the directory where the update is stored (Apple folder on my pc) and deleted the software update file. Then I emptied my recycle bin. Launched iTunes and redownloaded the update again. When my phone attempted to restore itself it hung up 1/4 of the way thru and sat that way overnight. When I unplugged the phone this morning I got error 14 again.
This is what I did to fix it this morning:
1) went back into the directory and deleted the software update file
2) deleted my recycle bin
3) rebooted my computer
4) launched iTunes again with my phone plugged in (I did move it to another USB port but I'm not sure that had anything to do with it working this time since I had used that same cord and port when updating my iPad last night and had no problems with it working)
5) iTunes prompted me that my phone was in recovery mode and needed to restore. I selected "update and restore" and it went thru the process with no problems.
I hope this help others that have a similar problem as this is very frustrating to me. Good Luck!

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