We've been sent this fix by reader, Will, we haven't tested it. If you are in iLimbo, you may want to try this to get things moving again.
"I called Apple and here are the steps to leave recovery mode:
Disconnect phone from computer
Hold down the power button & turn phone off
Wait around an hour
Press the home button, & plug in cable to computer ( don't let go of home button) When itunes comes up & says it finds a phone in discovery mode, then release the button
I tried this and it did what it was meant to, offering me the option to restore; however, I didn't go the whole way and restore it as I want to keep the v2 software till the problem is sorted. However, it may be that someone has a bricked phone and wants to at least make it useable again."
