Error (3) in iTunes. iPhone 4S cannot be restored [iOS 7] Please Help.

It all started a couple of days ago. My phone was already on iOS 7 only, as in 7.0. I kept checking for software updats. Your phone is on the latest version it told me. No it wasn't. I wanted to upgrade to 7.0.2. but it wasn't showing that I need an upgrade (on the phone itself or in iTunes) thus, I couldn't update. This is when I INTIALLY RESTORED my phone.
1st:
          Restored my phone. Finally updated to  7.0.2. but it COULD NOT pass the activation screen when setting it up as a new phone.
2nd:
          I did a full restore again - not from a backup and somehow got my phone completely back to the way it was before I started ANY of this process only difference was I was FINALLY on 7.0.2. like I wanted. Great, just what I wanted. My phone worked fine I was able to recieve / make calls, texts, etc. I was connected to my (Sprint) network and it was all normal...until the next day.
3rd:
          My phone lost signal (so I thought). All it said was "Searching..." and contacted Sprint. They tried to fix the issue but couldn't. After a long while the Sprint Rep reccomended that I should restore my phone again. He told me to do it from my phone "Erase all data or whatever" but of course I didn't listen, not to be defiant but I didn't know how much to trust the phone vs the computer backup...BIG mistake. I figured I should backup my phone from my computer so I attempted to restore my phone through computer / iTunes anyways.
NOW my phone will not restore no matter how hard I try.
I tried DFU mode and restore it. I erased and updated the hosts file via the users> windows>system32>etc>hosts. NOTHING is working.
I'm stuck in recovery mode with the plug into itunes symbol.
Every time I do attempt to restore hoping MAYBE this time might be different the restore progress bar goes all the way full nearly...with the tinest sliver almost not even visible left that won't be completed when iTunes then pops up with the error message.
I used to get error message 3194 but now I'm just getting error message 3.
*ABOVE ALL I want to be able to access into my phone again but **KEEP IN MIND** somehow, as I previously explained, I skipped the activation screen. So I don't even know if my phone is activated any more.
Luckily my iTunes still recognizes my device and that it is in recovery mode and tries to restore it.
THANK YOU SO MUCH if you can help me! I really appreciate it all!

I have purchased unlocked phone which i had a broken rear glass and got the same replaced at Apple for $200 and have had a problem with network it was going to searching for eternity. For restoring had to disable Find My iPhone which was not working and so was advised in the community to erase the phone and restore it from iTunes on Mac. I did the same and even took the help of Customer Care Executive who tried along with me to hard reset the phone and restore it.
It would throw up the Error couldn't restore Error (3)
Tried on multliple Macs ( Thankfully have two of them) wouldn't work and then also tried on windows 8 machine wouldn't work even then.
Now i will have to go to the Store again.
Somehow suspect if the replacement phone i got was a refurbished one not a brand new one. moreover consistent issues on the network suggest that the activation wouldn't have happened in the first place.
Need help if my assumptions are true. Else would have to sue Apple in India for supplying defective handsets.
I will sue them the moment they want me to pay again for the replacement.

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