Yesterday morning, my wife went to turn on her 3G and it told her to connect to iTunes. When we connected it to her computer, iTunes told her that it couldn't restore and it said something about the SIM card. I took the sim card out and did a hard reset with the same results. She took the phone in this morning to the Apple store only to be told that they couldn't restore it either and she would need a new phone. Unfortunately, her waranty is expired and so they are telling her it's going to cost her $200 and all she gets is a new 3G... not a 3GS. I think it's crazy because you can buy a 3G new for less than $200 and for $200 you can get a 3GS with a new plan. Anyway, I was hoping maybe someone has had this problem and knows of some way to fix her phone or maybe get around spending $200 on another 3G. Thanks.