I have tried on five different occasions, i was up till 3 am last night trying to restore. I jailbroke it a second time and tried to downgrade my firmware to 1.1.1 (04.01...), then upgraded to 1.1.4 and 040405g, still no luck. tried switching USB=fail, tried using a seperate computer (downloaded itunes 7.7 and plugged in trying from 1.1.4 to 2.0, hung just like desktop)

@person above, i have 7.7 and i have been trying to restore. that is my problem...

i really would like 2.0 !!