Can't get past set up with ios7

I have an iphone 4 and just updated from ios 4.3 to ios7. it went through the full restore but the phone won't work. It's showing the Hello>slide to set up screen. then I choose wifi then I get to a restore screen. I've restored a few times now and it just doesn't get past this. It's not even working as a phone now and I'm really worried that I've lost all my contacts too. What am I doing wrong? What can I do to get it working?

I went into the Apple store and the guy fixed it somehow using icloud (strange since I backed up to itunes not icloud) but I'm not complaining!

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