Help: Getting an error when upgrading???

I updated to Itunes 7.7 then I was trying to restore my iphone since I wasnt getting the update to 2.0. so it started the process by downloading the update then backing up the iphone and finally trying to restore it.
But it suddenly said
Error with the Itunes store and please try again later.
Unknown error....

Now my iphone wont work at all. It was not jailbroken.

And I am phoneless. Should I go to an O2 store or the Apple store or what?

Thanks

We're all in the same boat. There are 3 threads about it this morning.

Join teh clubbing.

the apple activation servers are down this morning causeing both new account activtions (new iphone 3g owers) not to work and the activation process that is a part of installing new firmware. New customers are being sent home and asked to activate via itunes later when the servers are up.

yeah this sucks . apple once again ill prepared.

seriously...*** apple? i've been on the phone with them for just over 1.5 hours...and i ain't a happy camper! >

2 o clock?.. uh.. thats annoying.

just wondering if anyone knows when they are suppose to have the servers repaired, or if anyone has had any luck.