After update to iOS 7.1, iPhone 4 won't work. Stuck in recovery mode. Won't restore.

Hello,
So I'm pretty baffled at this point. Last night I started downloading the iOS 7.1 update as my iPhone 4 was plugged into iTunes. The update did not complete on my phone. Instead, the dreaded "Connect to iTunes" logo appeared. After researching last night and again this morning, I have not found a solution.
When I plug my phone into iTunes, this message appears: "iTunes has detected an iPhone in recovery mode. You must restore this iPhone before it can be used with iTunes." Then, I have the option to restore iPhone.
So, having come to terms that I will lose all data - luckily my photos and videos have all been uploaded to my computer - I began restoring it. As it's downloading, this message then appears:
I've read through the "More Information" page several times. Checked my host file, added the "# " in front of the gs.apple.com IP address, restarted the computer, and still no luck. I haven't tried updating or restoring on another computer yet, but I have a feeling that won't change anything - I've read other people's accounts and that step just didn't work.
I updated my iTunes to the lastest version and restarted. Nothing.
I downloaded tinyumbrella and RecBoot to try and exit the apparent recovery mode. This didn't work. I have tried numerous times restarting the phone (holding down the home button and power button) with different variations of unplugging the USB from my laptop, letting go of the home button when the Apple logo appears, holding down the + volume button along with the power button, etc.
Does anyone know what I should do? Would calling Apple help? Or would going in person to an Apple store be better? Would they replace my phone? I don't see how this can be resolved unless the Geniuses have a universal restart method that bypasses everything. I need my phone for work and would be okay with just restoring the phone. Note: My phone has not been jailbroken.
Really hope someone can help. I would greatly appreciate it...
Thank you!

The fact that gs.apple.com was in your host file to begin with is an indicator that your computer was used to jailbreak or hack an iOS device at some point in the past. You can not get help here for a hacked or jailbroken device. If your phone was hacked or jailbroken, Apple won't touch it.
RecBoot and Tinyumbrella are hacking tools.
Google "iPhone DFU mode".
Try restoring in DFU mode. If that doesn't fix it, make an appointment at the genius bar and see what Apple has to say about it.

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