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You should have backed up. You still can restore all of your data from a backup (if you have one.) I forgot to but had a one month old backup so all is well.
I just went to do todays update on my 3GS and LOST EVERYTHING!!! Phone was restored to factory settings. This is F-ING BS!!!!! WTF!!!!!!!!
I think you're getting upset for no reason. I understand it's a hassle... but you can afford the 10 minutes it is going to take you to restore from your backups.
Your music and videos should be sync'd to the PC already, so those will come back when you sync next, but you might need to run a "restore" to get your apps back.
It should have happened automatically, but because the restore is validated online, and Apple's servers are reportedly overwhelmed to the point of unreliability, a lot of people are reporting errors. I got an "error 34" a few times, until I told it to restore to a "new iPod." Then it worked perfectly. This was with a 3rd gen. iPod touch.
Everybody, even though iTunes is supposed to prompt you to backup and restore automatically, just be safe and do a manual backup before you let the update run.
I lost everything as well. I backed up before I started and I started the download of firmware and then updated. When it asked to restore from backup, I said yes and continued and it asked for a password. When I got it, I never set up a password for the very reason I might forget it so I never had one. I tried every password I could think of. Even the Apply dude helped via phone. Nothing. We just came to the conclusion that I'd have to start from scratch. Which is fine but a majority of my contacts aren't synced with any program in my computer so I"m SOL there. But my SMS history was of sentimental value. But oh wel, I've let the anger seep out of me slowly and just live with the fact that I'm screwed. Boo.
I updated my IPad and IPhone 4 yesterday. I had no problems.
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