this shows you dont have bootloader access.
select down and then up on the recovery icon (next to the downloading icon).
select apply update from sdcard, if it says 'unable to mount volume' and gives you two ../, then launch an adb shell, and type mount. do you see /data mounted? do an ls -ld /sdcard, is it not owned by root? if either of these are false, you wont be able to flash through this recovery and/or push anything to the ramdisk to flash.
if that is the case you can try this -->
we will try to flash a custom recovery to your device.
do this:
download all files from (i9000 downloader.rar is for windows):
http://droidbasement.com/galaxy/retail/
unpack the i9000 downloader.rar (use winrar to unpack this:
http://www.rarlabs.com/download.htm) in to a folder (you will end up with two files)
get your device in odin (download mode):
press power + vol down, press vol up on the digging android guy (default selection)
on the screen it will say odin3.. press start.
plug in your usb
launch odin..exe as administrator
you will see COM in yellow on the left hand side.
click on PDA and select the recovery-cwm.tar.md5 file
click start.
if it flashes successfully you have now flashed a custom recovery to your device. lets see if you can get to it:
go back to the screen (with the digging android/recovery icon), and select (vol down) the recovery icon and pres vol up to select.
if you see CWM (3.2.0.1), your good.
if it says write failed and flashes red in that box on the left hand side, odin is not accessible either.