IPad cannot be restored unknown error 1; I tried to update my iPad 1 to new os5 by syncing to new version of iTunes and found a message that my iPad needs to be restored.  I tried several times and continue to get same error code unknown 1; how to fix?

When trying to sync my ipad to latest version of itunes, it appears the ipad identity was lost and a message in itunes says to restore the ipad.  However, multiple attempts to do this continue to provide the "This ipad cannot be restored. Unknown error 1"  I have tried resetting my ipad which just brings back the screen to connect it to itunes.  I have updated all software on my computer and restarted.  No luck!.  Please help!!

Thank goodness for this thread! 
I installed iOS5 last night and was having the same problems described above with my iPad 1 32 GB + 3G.  Unknown Error (1) and was unable to restore. 
I took my ipad to the local Apple Store today and was told by the genius that it was a hardware issue, and because the warranty had expired, there was nothing the Store could do.  He suggested that I try calling AppleCare.  Then I asked to speak with a manager.  He apologized again and said there was just nothing the Store could do.  I was close to leaving, when I asked a second time if it would be possible to see a Manager. 
After asking a second time, he called a manager.  After explaining my issue to her, she immediately authorized him to give me a new iPad !   Anyone with this problem should definitely go to the store and be polite but adamant.  You should get a new iPad.

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