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HT4623 Problems Updating My iOS!

Time:October 11
I've just sync'ed my Iphone 4 and it said that newer versions of Itunes / QuickTime were available.  I updated these.
When my phone was connected it the itunes told me a newer version of iOS 6.0.1 was available for my phone did i want to download and install.
I ok'd it and itunes backed up my phone and then downloaded the iOS.  My phone was then in recovery mode - itunes wanted me to restore my phone so it would work with itunes.  When I look at the progress of update and restore it completes but my phone is left in recovery mode and I can not get it out of this state which means I can not reinstall my backed up data and essentially I'm left with a VERY EXPENSIVE paperweight!
The phone was purchased originally from Apple factory setting unlocked.
Any assistance gratefully recieved
What model iPad and what iOS are you currently running?
If you have an iPad 1, the max iOS is 5.1.1. For newer iPads, the current iOS is 6.1. The Settings>General>Software Update only appears if you have iOS 5.0 or higher currently installed.
iOS 5: Updating your device to iOS 5 or Later
How to install iOS 6
iOS: How to update your iPhone, iPad, or iPod touch
If you are currently running an iOS lower than 5.0, connect the iPad to the computer, open iTunes. Then select the iPad under the Devices heading on the left, click on the Summary tab and then click on Check for Update.
Tip - If connected to your computer, you may need to disable your firewall and anitvirus software temporarily.  Then download and install the iOS update. Be sure and backup your iPad before the iOS update. After you update an iPad (except iPad 1) to iOS 6.x, the next update can be installed via wifi (i.e., not connected to your computer).
 Cheers, Tom