Software update failure, now phone frozen. Now screen only showing itunes logo and USB Cable on screen. Have I lost my backup?

I just tried updating the most recent software on my 3GS (on my Mac) but it said the updated on my phone failed. Now my phone is frozen and only showing the itunes logo and USB cable. When I connect to the USB lead, its says: iTunes has detected an iPhone in recovery mode. You must restore this iPhone before it can be used with iTunes.
Have I lost all the data on my phone?
What should I do?
Help!
M

The iTunes logo and cable indicates that your iPad has gone into recovery mode : http://support.apple.com/kb/ht1808
For the 3004 error code does the troubleshooting for it on the page that you posted from not help ?

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