Upgrade to 2.0 Failed and Restore Won't Take -  Suggestions Welcome

Looking for ideas please! Tried to upgrade my 8GB phone to 2.0 - failed. Now I can't get it to restore. Progress bar gets to about 90% done on "restoring iphone software" then appears to give up - even if left over night. Eventually the phone will disconnect itself and show the connect to itunes graphic. I've tried the various tips on these forums - tried the upgrade repeatedly, followed instructions to remove all traces of itunes, quicktime etc software and reinstalled it on multiple occasions, used different USB ports, ensured no other USB devices connected, updated USB drivers, held power and home buttons down as directed etc. It just won't go any further than completing 90% of the progress bar. I'm going nuts!

I have this problem every time I update. The only update that ever worked for me on my computer was the first update for the 1st Gen iPhone.
Even so, I still try every time that an update is released...to no avail. I found a work around that works:
I take the latest update and copy it onto a usb drive, plug my phone into another computer with iTunes installed and run the update on there. You have to hold down the Shift Key while pressing the Update Button which allows you to browse to the usb drive on which the new firmware is stored. It always works.
Strange that I have to do it from someone else's computer and aggravating to say the least.

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