Tried Everything..iPhone 3g will not restore to factory settings!

I get a message saying "Windows does not recognize the device, one of the USB devices has malfunctioned." I have tried everything..watched You tube to find out how to restore phone..made sure iTunes was up to date..uninstalled iTunes..installed iTunes. No matter what I iPhone will not show up in iTunes or restore. I even went into AT&T store to find out what else I could do and the guy told me I needed to hold down both buttons for 15 minutes, and definately something would show up on the iphone if not iTunes to restore the phone. I held those buttons till i couldn't feel my fingers anymore, and still nothing. I just want to see if my iPhone is broke before I buy the new iPhone 4. Also I have an iPod 2nd Gen. No problem with that not showing up in iTunes, so that's why I'm thinking it is in fact my phone that has the problem. I don't want to take it to the Apple Store, they'll just charge me $30. So if anyone else has any suggestions, would really appreciate it..I'm at my wits end. Thank You!

Hi Grubes20,
If you are having issues restoring your iPhone, you may find the following article helpful:
Apple Support: Resolve iOS update and restore errors in iTunes
- Brenden

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