Apple exchanged a new phone for me because of a water damage (I paid extra for it). The next day, my phone cannot find any network. I tried resetting the phone, restoring..everything. It worked for like 1 hour, and then this message "Restore Needed. Iphone cannot make or receive calls. Restore from Itunes." pops up again. I bought it to Apple Gen. Bar, the guy said its probably because of my sim card that got the water damaged. I went back home and found a brand new 3G sim card that I forgot to insert when I got my phone a while ago . Used the new sim card, and few hours later..still getting that message!!!! I tried restore, reset..everything! My iphone was able to find my network, but it go back to "searching" or "no network" after a while. Went to Apple store again, told them that I changed a new sim card. The girl said she would restore the phone for me. After restoring the phone, it worked fine, obviously she send me home because she said there's nothing wrong with my phone. Today when I wake up, I saw the same message on my phone again. Tried the hard reset (home button + power), it asks me to connect to itune (or else I can only make emergency calls). Restart my phone (just the power reset), it was fine again, with network and everything. But this time, when I click into my download application, it pops back to the main menu. I deleted all the downloaded application and re-download them again, they worked fine. So, I'm guessing that I will most likely get the "Restore Needed. Iphone cannot make or receive calls. Restore from Itunes." message again. And because it works after I do a hard reset/ restore, there's nothing Apple Gen. Bar can do anything about it right? What can I do? I don't want to restart my phone 10 million times a day or restore it twice a day! Please help!