Hey Applejuiced,
I just tried to restore to 4.0.1, and I got an error at the end saying Restore failed, unknown error.
Now the iphone shows the usb cable pointing to itunes logo.
TinyUmbrella is still running server, and the last entry is "Wrote TSS response"
Also the "kick device out of recovery" button is grayed out.
What did I screw up?
Shut down Tinyumbrella and unplug your iphone. Then turn TU back on and plug in your phone. See if that helps get the button functional and not grayed out.
You just need to kick the device out of recovery thats all and then it will start on with 4.0.1 restored.
You can also use recboot for that but TU should do the job fine.