iPhone 3G stuck at plug in iTunes

I was running OS 3.1.2 successfully jailbroken with Blackra1n. Last night I thought of updating to the latest OS 4. So I plugged in and followed the steps here at How To Jailbreak iOS 4, iOS 4.0.1 Using Redsn0w For iPhone 3G Users [Windows] - iPhone Hacks

Everything went fine, I mean everything, all the steps and finally after the phone is jailbroken, it takes around 5 minutes to re-start. Before re-starting it says downloading jailbreaking data.

However after successfully doing all the steps listed in the tutorial above, the phone re-starts to show the USB plug and iTunes logo. It just does not start and take me to Cydia.

Its been non-stop 12 hours trying to figure out what to do. I am terribly stuck. What shall I do now?

Edit, problem solved. I used restore on itunes and then jailbroke it.