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iOS 5 was released tonight, and it seems that a lot of people are having problems upgrading, include me!
It seems that the problem is just that too many people are hitting Apple’s servers to get the update.
The problem is that in my case, my phone is left in the “connect to iTunes” state and isn’t usable. Now to get my backup restored so at least I can get my phone usable again and then try the update another time!
Oh, it seems iTunes will only restore my backup AFTER it performs the update to iOS 5, which it can’t do right now. Great – no usable phone!
Are you having problems?

Time to switch to a Titan anyhow!
I downloaded the update and then installed it with no problems. I have to say though, as a non Mac/ iPad user, there doesn’t seem much to get excited about. I am still looking forward to the end of my contract when I can switch to Android
I always select the “download only” option for IOS updates – eliminates the need to leave the phone connected during the download and any potential problems from Internet connectivity
i bricked mine like that last night, eventually the update went though and was fine, and left ipad to download during the night and it managed it without issue.
just keep trying