iTunes 10.5.1, I did the option+update method. Worked just fine
Yeah see I always do a DFU option+restore, and this choked (a method that has worked since my 3G).
Others on the forums are having mixed results with either method.
I think it's something to do on Apple's side, personally, and some folks are just getting lucky. If the install required 10.5.1 I'm sure Apple would've mentioned it.
Anyway thanks for the feedback. Glad it's working out for ya!