All the posts and information I have read across the various sites and forums seem to all state that once an iPhone is in restore mode then the only way out of it is to perform a firware restore using iTunes.

Well today I discovered then if you are in restore mode (because you have forced it using the 2 button hold down method), run the 'iphuc' utility, and issue the command 'cmd fsboot'......a few seconds late you will be straight back (without actually rebooting) to normal with nothing lost of changed.

FYI this is on a O2 UK 1.1.2[OTB] with the 1.1.3 update.