Hi guys,

Don't mean to hijack the thread, but I have the same issues here.
Started yesterday (tuesday), my 3g iphone showed "restore needed".

The phone was jailbreaked and unlocked, firmware was 3.0

Didn't realize about the new firmware, connected to iTunes, did firmware upgraded (the newest version, 3.1.3...)
the restored failed....

Tried recovery mode, didn't work (tried at least 3x)

Tried DFU mode, it looked like it was going, the progress bar was showing progress.
After the progress bar reached the end, the iTunes keeps showing "restoring iPhone firmware" It kept running for about 30 to 60 mins, then gave out error.

Tried this DFU mode at least 4 x, using two different computers, both using the latest iTunes.

During DFU, I tried using older firmware (3.0xxx), same results.

I know I messed up and possibly bricked my iphone

I posted the latest iPod Updater log, link:

pastebin - collaborative debugging tool

Any help advise is greatly appreciated.

Thanks guys....

Try a different USB cable, otherwise you could have a physical hardware problem with the iPhone.