I started to follow this procedure:
http://www.hackint0sh.org/forum/show...t=17580&page=4

Stupidly for the first part I didn't use manual update for the first part to 1.1.2. I was the default update so I thought it was okay to click it without pressing the shift button. My phone has been stuck updating all night! The apple logo with the spinning wheel is still there and itunes says it is updating iPhone software. What do I do now? Can I disconnect it???

You can surely disconnect it... and then restore or redo the whole process