29/11/2011. I have just upgraded my iPhone OS 5 (not that I particularly wanted to, I just thought it was a standard bug fix upgrade) and had all sorts of scary issues most of which are really simple to fix, yet quite poorly explained by Apple. When upgrading your OS, never panic and unplug things mid flow. If you have a question, take a time to search the web for the right answer. I haven't played with the new OS much yet but it looks pretty familiar and seeing as it's there now I will stick with it. Anyway, here were my key issues:
Pretty scary. You now have a completely blank iPhone / iPod with no service connection or anything and it won't connect to iTunes. All is not lost. Simply reboot your computer to get passed this issue, but see the point below too.
iTunes now connects to your iPhone again, but the data is still missing. If you see this message and add your iPhone lock password it wont work, but do not panic (like I did, especially as I had mine set to delete all info on 10 wrong attempts.)
It is not the password that you use to unlock your iPhone. Its the password to your iTunes account.