I am give the tile of genius to the one who figures this one out. Every thread I read on a few dozen forums reach a dead end.

I have a endless boot up (apple Icon goes off and on) when phone is not plugged in, AND NO I CAN NOT RESTORE!!!! Because I would need to choose "as new" option in the restore process and Itunes does not give me the option nor any backup option(3rd party software must be blocking it). I am handcuffed on this one. Also older flash does not do anything. Bottom Line I need to verganize this phone, and I can not do it with Itunes since there is no as new option.

GOOD LUCK!!