I am so sick of these "update and restore" errors I keep getting everytime a new update comes out. I have updated 6 times since buying my iPhone earlier this year and everytime have had the installer hang partway into the process causing my phone to need a complete restore (which then also hangs leaving the phone in a bricklike state). I eventually found a workaround here:
http://discussions.apple.com/thread.jspa?threadID=2103918
Orignal From: Updater bug - when will it be fixed? ...
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