It has been more than 2 years since I bought it from here in India, it had been working great for me until one day (last week) I came across this message that “Restore Needed, iPhone can’t make or receive calls. Restore from iTunes”.
I had no option but to backup all the important stuffs like contacts, notes etc manually and restore it to the same or new firmware version. I have been running it on the firmware 3.0 version (bit old but was running fine to me), as I didn’t want to update to the new version else it would become slow.
State of my iPhone before restore:
It was iPhone 3G running on 3.0 firmware, jailbreaked with Redsn0w and unlocked withUltrasn0w. I have been using it with the same state for over a year now.
What I did to restore my iPhone 3G:
I did lots and lots of things to get my phone back up and running which as mentioned below (the story so far):
1. First of all I backed up the data using iPhoneBrowser manually.
2. Downloaded and installed the latest version of the iTunes that is version 10.2 bit 64.
3. Tried restoring the iPhone to the same firmware that I was running till now that is on3.0 but the issue while doing this was, my iPhone just freezes when the progress bar turns full (100%), and finally shows the error 1002 in the iTunes.
4. Next step what I did was to search the solution for this error code 1002 but I just found that this error is because of some baseband problems and I was thus unable to find a solution for it. 
5. But I didn’t lose any hope and downloaded the firmware 3.1.2 and 3.1.3, tried restoring on both these one by one but for both of these, the phone freezes at about 99% progress bar. Thus restore was not possible.
6. I even tried updating to the firmware version 4.2.1 but was unable because of the same issues as mentioned above.
7. I, then tried restoring the phone on my friend’s system. It was 32 bit Windows, sodownloaded and installed the iTunes accordingly, but iPhone froze on the apple logo there as well.
8. I started getting worried but I didn’t lose any hope and wanted to fight for it till the end. So I went to the Apple authorized dealer nearby, who tried restoring to the latest firmware on his Mac but the problem was still there.
9. I kept reading few pages on the net about unbricking the iPhone and about Saurik shsh but to my disappointment, none of them worked.
10. Meanwhile I was facing lot of problems because of the missing contacts etc that I decided to get it fixed by someone else who does this professionally.
11. I went to him for it to get fixed, but since he was unable to fix it for me, he confirmed to me that the baseband of the phone has been damaged and this is the death of your iPhone 3G.
With grief in my heart, I had to leave the place. To summarize all, my iPhone is dead now (is bricked) and don’t know if I would be able to get it running again or not.
What I can do now:
I called the official Apple customer care in my place and got the address of the service centres nearby. Since my phone is not in warranty anymore (warranty is for 1 year but it has been over 2 years since I bought it), I should get it to the centre and see if they can do anything for me
Moral of the story:
So the moral of the story is my iPhone 3G (which was my first phone) is dead and badly needs a phone :’(
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