Stupid iPhone and iTunes united to create havok. In an effort to upgrade to the 2.0.1 firmware I managed to get my iphone in a state where it thought it needed constant restoring. Needless to say this frustrated me to no end. The restores took 1-2 hours and accomplished nothing. I found what seems to be a fix, becasue things are working now. I basically ripped out the iPhones life line during a restore. Here is a link to the forum with the fix, may it help someone else.
http://forums.macrumors.com/showthread.php?p=5997941#post5997941
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