Will not restore

Hi All,

I am having major problems with my iPhone 3G. Around a month ago it suddenly displayed a message stating that it could not make or receive calls and needed a restore via iTunes. I tried this and it would not restore, always hanging at the last part.

I downloaded the Pwnage Tool and built a custom firmware for it using the latest software from Apple 3.1.2? After doing this the phone restores, activates and will do everything but is constantly 'searching' and never gets a signal. Then I get the 'cannot make calls, restore' message again.

If I don't activate the phone using Pwnage I get a message in iTunes stating that no sim is fitted this continues to be the case even with a new sim.

Can anyone help, or is my iPhone destined for the bin...