So, I was getting the same error about not being able to restore. Unfortunately, I'm a moron and didn't think to check the forum, so I kept troubleshooting and retrying.
Finally, I did a hard reset on the iPhone, deleting everything - and when it still didn't work, I figured something was up on Apple's side. I gave it a little while, and sure enough, it went through.
Unfortunately, I lost the position of my icons - which I'm just THRILLED about, seeing as I only have a billion of them (and up until now, they were all neatly organized).
And to add insult to injury, my MBP kernel panicked during the 10.7.2 install... fortunately, it seemed to recover itself. I installed the Combo update just to be on the safe side.
Not a good day in Apple land at all....