iphone does not work after I restored and updated it!!! help me please!

I have an iphone first generation, and i restored it and it updated the iphone version thing to 2. something, I don't remember, but it was 2. something. And it said it could back up my files and such so after I can restore the phone with old music and apps and such. So after I downloaded the newer version, it updated my phone, but then on itunes, it said that I have to use the original SIM card that came with my phone to activate it. So I thought that means I have to do the whole Ziphone jailbreaking thing again, so I downloaded ziphone again and tried to jailbreak it, but I waited for so long and the ziphone process never finished. So I cancelled it because the ziphone thing didn't work, it seemed to be stuck on a certain step. It keeps saying "rebooting phone in recovery mode", but never goes past that. And now when I put my phone into the computer, itunes still recognizes it, but it says that the phone detected is in recovery mode and i need to restore it. So click restore and nothing changes. When I detach my phone from the computer, it still has the screen where there is a cable and then an arrow pointing to the itunes logo, which means I should connect to itunes. Then I connect to itunes and nothing happens. It says "Itunes has detected an iphone in recovery mode. You need to restore this iphone before you can use it with Itunes". So I restore it and nothing changes???????? PLEASE HELP ME!