Need some insight

Hey there, here's my plight. I bought an iphone 3.1.2 from a guy here in Australia but he didn't mention he had bought it in the America. It was already jailbroken.The phone was given to my girlfriend as i now have an iphone 4,she wanted it restored back to original ( not jailbroken ) so it was hooked up to itunes for a backup & restore but now it is stuck there in restore mode.& for some reason wants to go through the accepting terms every time i plug a iphone in (doesn't remember doing it last time). If anyone has any solutions i would be extremely greatful.Regards Mark.