IPhone told me I needed to restore and update, also said the phone did not have an IMEI number. I tried to restore from iTunes but keep getting an error message.

Ok I need help. I went to use my phone, put in my passcode, emergency dial came up, then the phone said I didn't have an imei #. I hit the back button and then I was told I needed to restore and update using iTunes. I tried several times to do this and my phone is still not working. It acts like it's updating, but once the bar reaches the other side of my phone, iTunes tells me there was an error. I used all the ports on my pc, changed cables, restarted my pc, and still nothing. Can anyone please help me. This phone is my life and I can't afford to get another one.

Sounds like you might need to take it to an Apple Store but if it is an iPhone 3G it would no longer be under warranty.
Looking at the Apple Store online you can get an iPhone 3GS from $49 on AT&T if it comes to having to get a new one. Your other option is second hand.

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