Persistent Restore Screen

this might help

I went through that a few days ago, when i updated my 3G to 2.1. It was a never ending restore cycle, that I couldn't escape: I deleted and restored my itunes, I turned my phone off/ on: nothing worked.

I did this. I simply clicked the button that said "set up as a new phone" and it set up the phone perfectly. I don't know why, but that is what worked. It didn't make me reactivate the phone or anything or transfer my phone number, it just seemed to get me out of that "loop".

 

I had the same thing happen and did the same as mikey. The one way out was to set up as a new phone.

 

This happened to me as well. I had called Apple Care after spending the day trying to fix it myself and the guy at Apple Care had me delete my iTunes (by removing specific files), reinstalling it and then trying to resync my iPhone. Since everything other than my media was still on my iPhone, he had me choose setting up a new phone which ended up working fine. He was prepared to try restoring yet again from backup but since using the new phone option worked, we stuck with it. I recommend that you call Apple Care and have them walk you thru it. You get a year of phone support with an iPhone, so use it.