I am also having the same issue. I downloaded the update on my phone, it then told me to connect to itunes and when I connected to itunes it began telling me that my phone was stuck in recovery mode. It just keeps going through the "recovery mode" motions, but not actually getting to the installation process. Any suggestions how to stop the cycle? I uplugged my iphone at one point from itunes and did a manual shut down/restart of the phone but it just cycled through again.
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Finally I got a tutorial named: [http://www.recovery-ipad.com/ipad-stuck-in-recovery-mode.html|iPad Stuck in Recovery Mode]
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You can have a try and hope [http://www.recovery-ipad.com/|iPhone Data Recovery] can help you.
I am also having the same issue. I downloaded the update on my phone, it then told me to connect to itunes and when I connected to itunes it began telling me that my phone was stuck in recovery mode. It just keeps going through the "recovery mode" motions, but not actually getting to the installation process. Any suggestions how to stop the cycle? I uplugged my iphone at one point from itunes and did a manual shut down/restart of the phone but it just cycled through again.