Iphone 4 stuck in recovery Mode (READ BEFORE ASSUMING I"M DUMB :)

So I've tried a ton of different stuff to get this iphone out of recovery mode. When I first got the iphone, it was booted and looked normal except the home button didn't work. It is running IOS 5.1, and when I plugged it into a computer, it went into recovery mode. So I've made coustom IPSW's using snowbreaze, and tried restoring from those in DFU mode. It took some doing to get it into DFU mode seeing as how the home button is broken. I get all kinds of random errors, and a few times it will say its restored from the coustom ipsw but when the phone resets it goes right back into recovery mode. Any ideas or threads you could point me to?! This is driving me nuts.

Most recently, after getting frustrated by trying to use coustom ipsw's and it not working I tried the default itunes restore and I get this error message "The Iphone "iphone" could not be restored, an unknown error occured (1)"

Applejuiced said:

Sounds like it has another hardware issue besides the home button.

Click to expand...

Like what?

Applejuiced said:

Dont bother with custom firmware, just try to restore it to factory stock 5.1 firmware.
Make sure your hosts file point to Apples servers instead of cydias if you changed that manually or by using Tinyumbrella.
Or try a restore using another computer.
If it still gives you an error then you have a hardware issue. What part went bad is anyone guess.

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Thanks, Ive edited the hosts folder before, but what is supposed to be in there so it points to apple servers?

** What i'm trying now is I edited the files inside of a .ipsw so that I could put my phone into an endless DFU loop, and now I am trying to restore using Itunes default settings, I.E. ios 5.1. Lets cross our fingers. If it doesn't work, then I have to restore again using the DFU loop ipsw and try something else lol...this blows. I might just sell it for parts.

*****Restoring from DFU mode does not work, I get the error message "The Iphone "iphone" could not be restored, an unknown error occured (1)" This is crazy...no clue what to try, I've done so much.