Ok, so just over a year ago I bought an pay as you go iPhone from o2 (in the UK). I paid up the cash for them to unlock it so that I could use it on other networks. I received the confirmation and it seemed to work fine. A year later I've been having some problems with my phone backing up in iTunes. I decided to do a restore, that's where things went bad. After the 'restore' I get the message: 'We're sorry, the iPhone you connected may be damaged and cannot be activated for service. We recommend you visit your nearest Apple Store.' I haven't tried to jailbreak my phone, everything on it has been legitimate with the latest firmware etc. Any ideas? It's out of warranty and I'm also outside the country I bought it in so I guess no Apple store here (I'm in China) will touch it. I'm not sure it is a hardware problem as the signs seem to point towards activation issues, even though my phone was officially unlocked by my carrier.