Yes, you need to put the iPhone into recovery mode and then connect it to iTunes and it will let you update and restore. Look out though, the firmware file is 92 meg, so letting iTunes download the file for you sux it takes forever -- and while it was downloading, my phone would time out of recovery mode. Some mirrors have the file available for download and all you have to do is put it in you/library/iTunes/iPhone Software Updates and then do the restore. iTunes will see that you have the file and won't try downloading it.
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Yes, you need to put the iPhone into recovery mode and then connect it to iTunes and it will let you update and restore. Look out though, the firmware file is 92 meg, so letting iTunes download the file for you sux it takes forever -- and while it was downloading, my phone would time out of recovery mode. Some mirrors have the file available for download and all you have to do is put it in you/library/iTunes/iPhone Software Updates and then do the restore. iTunes will see that you have the file and won't try downloading it.