Sorry this is going to be a long explaination, hope someone will help me diagnose the problem with my iPhone.

I just bought a used 2G iPhone 8GB iPhone. It had a cracked screen but it worked fine. Only other problem it had is that it keeps restarting when it goes to standby mode.

In order to get it back to the home screen I have to connect it to my PC, then only it will stay on. Not only that, when on the home screen, if I hold down the power button, it won't show me the "Slide to power off" screen. In order for me to show the "Slide to power off" screen, I would have to hold on to the power button when I am restarting the iPhone and when its showing the Apple logo.

I opened up the iPhone to see what was wrong with it. I found that from the inside, under the headphone jack, the water indicator was red. But when I further opened up the iPhone, the water indicator on top of the mother board is still white.

So maybe, I am guess it is a partial water damage. So is there a way to fix the iPhone? It keeps rebooting when left idle, which means, I can't use it at all as a phone or an iPod.

I am afraid that is there any bug in your firmware? The best solution I can give you that if you have warranty then contact with apple. If there is no warranty then contact with any hardware specialist.

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it could be a battery problem which isnt soldered properly...could even be a damaged communications board..