I have an iphone 4 jammed in MDU mode, I conect to itunes and asked to restore, it went through all the steps and nearly completed it gives me an error message saying cannot be restored error -1.  Can anybody help me how to restore my iphone

I have an iphone 4 started the problem saying no service, then when restarting asked to connect to itunes and became jammed in MDU mode, I connect to itunes and clicked on  restore, it went through all the steps and nearly completed it gives me an error message saying cannot be restored error -1.  Can anybody help me how to restore my iphone.  or what to do next, some reseller asked me to go the shop where I bought to replace it for me as this error cannot be restored by any shop.  It has to be returned to apple and get it replaced.  The warranty already expired and don't know what to do.
Please help

Error 1 or -1
This may indicate a hardware issue with your device. Follow Troubleshooting security software issues, and restore your device on a different known-good computer. If the errors persist on another computer, the device may need service.
http://support.apple.com/kb/TS3694#error1

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