Don’t update to iOS5 just yet
[UPDATE] All is well now on the update front. So don’t let this put you off. Head on over to the iOS 5 post to get the full run down of the latest features before upgrading.[UPDATE]
It appears that although it is the most anticipated apple update of the year, it has not arrived smoothly. With millions of users reporting error codes including Error 3200.

This locks your phone into the verifying with apple screen and leaves you unable to go any further. The only known solution for this so far is to do a full system restore and boot into a previous version of the iOS.
So please hang fire for a few hours/days until these bugs have been ironed out and you can upgrade without any problems.
If you do decide to go ahead with the upgrade then don’t forget to back up everything before doing so.
If you haven’t got yourself an iOS device yet then head on over to the main site for your Free iPad 2
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