I was getting the same thing, lastnight.

I took a guess and got passed it by:

1) Power on the phone and holding the camera and power button.
Which has been mentioned for making sure the boot loader was upgraded.

2) Then I launched the upgrade utility.

3) The usb disconnected while it was on verifying phone information.
i just unplugged and plugged it back in immediately.

That was it upgrade worked fine.


Basically the only thing I did different was to place the phone in bootloader mode immediately after I powered up.

-Kenny