This is such a pain in the arse. I have never, ever had such an issue trying to get an update to work. When I first got my iPhone, I had to update it, and to update it you have to first restore it. iTunes clears my iPhone, and then just refuses to do anything else. Just spews out error messages: "The iPhone "iPhone" can not be restored at this time. An unknown error (-1) occurred."
When it happened last time, I took it into the Apple shop and they just updated it straight away, so clearly it's an issue with the hardware I have, but I personally think it's completely unacceptable to just give a generic error message and say, "Sorry it's not working,"
It would be fine if it just said, "Sorry we can't update it at the moment, just carry on with your current firmware," but they just clear the phone, so I can't even turn it on. "You have to restore your iPhone before you can use it," - okay, I'll try that. "Sorry we can't restore your iPhone. Not sure why, either."
Don't get me wrong, I love my iPhone, it's brilliant, and so much better (once you get it working properly) than the HTC Hero I had, or the Samsung Tocco before, but I have never had this much hassle with a piece of hardware before. The dependency it has on iTunes, while it makes sense, is irritating and clumsy. I've created a playlist that syncs to my iPhone so I can have music on it, but then when I sync my iPhone the music doesn't get added. I have to go to the music tab and sync that separately.
P.s. Error message 37, relating to security software, this time.