I got this originally, then I just did what you said about transferring purchases, and it seemed to work. Shame iOS 4.0.1 has butchered my signal though :/
Tried that, same thing. It stops with the bar about 2/3 of the way across and then finally times out with the error. It seems I'm not alone, a lot of people are reporting this on the Apple forums. Some are saying it's congestion at Apple causing it to fail but I can't see that - Mine falls over while "Restoring iPhone firmware..." which is after it's contacted Apple. I have to go to bed now but will try again in the morning before I head off to work.
Been on 3 hours with my 3G and PC with Win7. The update to 4.01 failed, tried to restore back to 4.0 no good tried to go back to 3.12 same problem. Tried 4.01 another half dozen times....always failed about 1/12 of the way through.
Finally fixed it by uninstalling all apple software restarting PC, then downloaded iTunes 9.2 again and reinstalled it. Then downloaded the 4.01 firmware file seperate.
Opened iTunes and did a shift click on the restore button and selected the firmware file. Finally it seems to have worked...
Had this problem earlier, I had jailbroken my previous iPhone so had inserted a line into my host file which needed to be removed (be sure to restart comp as well) and it worked fine. Scared the hell out of me initially though
My 3G updated first time. I had the transfer purchases message as well and I just pressed continue. Everything seems to be working fine and dare I risk jinxing myself by saying that my 3G seems to be running much faster than before. Maybe it's just a placebo effect.
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