reboot the phone if not do another restore in DFU mode. This has been the case for some people but after doing the following the update worked flawlessly for me and others.
It should, and don't be mad most likely a minor bug while upgrading it happens sometimes, its the electronics industry for god sake! Just restore in DFU reboot let itunes 8 (Make sure u have itunes 8) activate your phone then reboot it manually, before turning it back on wait 5-10 secounds and then turn it back on. You'll be fine. Good luck!
Any problems feel free to PM me and i'll try my best to assist you instead of making one long drawn out thread.