Unknown error 1603 when trying to restore my iphone 3g in itunes - help!!!

hello everyone - any help on the following issue would be greatly appreciated!
just updated to latest version of i tunes on my PC, synced all my new music etc, then phone just got stuck on the black screen with the small apple logo in the middle. phone (iphone 3G) won't turn on and just has the signal to connect to itunes. so i connect to itunes and it says iphone is in recovery mode - must restore phone to use, so i do that but it keeps getting stuck on the 'preparing to restore i phone' screen for a few mins before coming up with 'unknown error 1603'.
anyone else had this problem?
anyone know if i can log into i tunes on a different computer and try to restore it?
if problem persists do i go to o2 shop where i bought it, or apple shop to sort it?? (stupid question probably) but i am clueless about this sort of thing! (i am insured)
any help hugely appreciated

i do that but it keeps getting stuck on the 'preparing to restore i phone' screen for a few mins before coming up with 'unknown error 1603'.
Just doublechecking. Have you worked through the 1603-specific instructions from the following document?
[Update and restore alert messages on iPhone and iPod touch|http://support.apple.com/kb/TS1275]

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