In the testing I did last night the second one iTunes allowed the restore, but after the restore was complete iTunes displayed a message. Unable to complete activation, If you are a developer please register your device. The device was completely unusable it would just display the setup screen and go through the activation process which failed again.
Correcting the second required putting the device in recovery mode then restore with 5.0 and follow the first procedure and the device is fully working with 5.0.1.
Doing the first procedure from the start was a successful update with a fully activated device when done.