Quote Originally Posted by lobo87 View Post
how can a nomrla software update damage the hardware?
Bricking your S-Gold [iPhone Dev Team]

This is an example of how you can perform a software upgrade damaging the device in a way that cannot generally be fixed by software.

Most other software upgrade steps cannot permanently damage the iPhone, some can be very difficult to resolve though.

It might not be a hardware problem but it really sounds like it.