My iPhone 3G was wiped out during the upgrade to 3.0. Apple has three subdomains that should be allowed through the firewall but because I was impatient I just put my computer in a DMZ for a long enough to complete the update. A DMZ for those who dont know just puts your computer outside the routers firewall. Just make sure your bring it back behind the firewall when youre done if you go this route. My router is a 2Wire which I dont find very easy to manage the firewall in. Hope that helps someone.
EDIT I did make a backup before had, which I forgot to mention in the original post. When I had the phone in the DMZ it successfully updated to 3.0 and restored my previous data on top of that, so I did not lose any information. In case I set any hearts to worrying.
Message was edited by: michirojo
iPhone 3G iPhone OS 3.0