I got my replacement iPhone 3G today, and I finally got around to setting it up tonight. When I plugged it into itunes, I tried to restore my backup from my old iphone and it said "the software needs to be updated first" So I clicked check for updates, and it mentioned the 2.0.1 update, and said "preparing phone for update". The phone sat for like 20 minutes in that state! On the display of the phone it has the sync cable with the up arrow pointing to itunes. I finally cancelled everything and powered the phone off. Now when I do it, it says "this phone must be resotred". So, again I am trying and it just get stuck in preparing for update! How do I get past that?