iPhone won't restore

Hi everyone,
I bought an iPhone today with the intention of unlocking it and then eventually get it running on T-Zones.
I downloaded Ziphone and installed it with the .net framework. I plugged in the iPhone and iTunes told me to activate it which i declined. I then exited iTunes and went into Ziphone and clicked the do-it-all button. It only took about 1 minute and then i get the connect to iTunes graphic.
iTunes says that the phone is in recovery mode and needs to be restored. I did the iTunes restore and it's still in recovery mode. I've downloaded 1.1.3 manually and loaded it through iTunes and nothing. I even did the refurbish button on ziphone, which took almost an hour and nothing.
Oh yeah and now when i plug the iPhone in, iTunes doesn't recognize it.

Any advice would be much appreciated.

Thank you,
Tom

***Update

I bought my iphone from craigslist. I popped out the SIM card and the card says 3G on it. I'm fairly certain that the iPhone is not a 3G phone, at least not yet. Could this be the culprit?

I'm running Windows XP. I think the problem is that there isn't enough charge in the phone to do anything on my computer. I always thought that when the USB cable is connected it also charged the device, but i guess not the iphone.

When you run Ziphone, do you have iTunes open at the same time?

I figured it out. I had to switch the phone to a different port and not use the dock and it restored.

Thanks everyone.