For the second time in a month, my iPhone went to "Repair Needed" mode.
I'm running 1.1.3 with no jailbreak or any other shenanigans.
For others that read this, the solution is to reset and restore.
Run iTunes, plug in, press and hold both the sleep/wake and home buttons for 10 seconds, then let go of just the sleep/wake button and continue holding the home button for 10 more seconds, then when iPhone shows up in iTunes, restore the iPhone which takes it to the factory state, then select restore from your last backup, wait a long time for all your junk to sync back and you should be good to go.
This is not good -- while it is hosed, the iPhone can only make emergency calls -- so, basically, I cannot travel without my laptop now. Good thing I sync to a laptop!
I think the commonality is that both times the error occurred as I was plugging in my iPhone into a non-Apple charger while I was using it.