Howdy,
A few words about my update problems and solutions:
1. perform a backup 1st!!
2. after download, iPhone was stalled and iTunes was unresponsive.
3. Force Quit would not work.
4. reboot Macbook Pro, and start again.
5. iTunes recognized that the phone had not completed the update...
6. Restore the iPhone and Update the installation.
7. successful transformation to 3.0....
That was the same thing that happened to me during the 2.0 update....something hangs in the verify phase of the installation.
Anyone else experienced this glitch?