Help with iPhone 3GS (not restoring, seems to be in loop)

Good morning!
My phone has not warranty and before taking the next step of having to replace it I would like to read your suggestions or possible solutions for the problems I'm experiencing with my iPhone:
I have an iPhone 3GS that fell into a cup of coffee. It didn't submerge completely and I was able to open it and dry it very quickly. When I opened it only the dock connection was wet (nothing on the battery or the motherboard). Either way I made sure to check every connection and made sure no coffee drops were left on the inside of the device.
Here are the issues I've encountered since then:
1. Afterwards I check the phone by plugin it into the wall charger. I turned on, screen looked OK and I was even prompted with the "Enter passcode" screen. I entered the password and immediately the screen went black and reset to the Apple logo. So long as I had the phone charging through the wall charger the Apple logo will constantly appear. No longer the password screen will show up and the phone seemed to be in a loop that started and ended with the blinking Apple logo. Once unplugged from the wall the iPhone will turn off and make no sound or show any signs of turning on again.
2. When connecting to the computer on the first attempt the iPhone will enter recovery mode (showing the connector and iTunes logo) and be recognized by both the computer and iTunes. iTunes will then prompt me to do a restore of the phone. I will follow the steps and "Restore and update" my iPhone. After "extracting the software" and "Verifying with Apple" to start the installation iTunes will prompt me with an error (I've repeated this step several times so there are several different errors I've encountered. Some of the errors include: 20, 21, 3194, 1600, 2001, 2003). After receiving the error iTunes will eject and no longer recognize the device. The iPhone (still connected to the computer) will no longer show the "Recovery Mode" logos and will start working in a loop (blinking Apple logo that appears to turn on and off as in a loop). The computer (device manager) will not recognize the iPhone either (no USB or ports showing the iPhone is still connected).
My iPhone is not unlocked or jailbroken. Before the incident with the coffee I managed to synchronize and update its firmware as indicated by iTunes. The latest update for my iPhone was 5.0.1. firmware. My intent is not to unlock or jailbrake the device, just to make it work again.
Here are some things I've tried since:
1. Exiting recovery mode via iReb, Tinyumbrella
2. Entering DFU mode via iReb, Sn0wbreeze,
3. Shift + Restore and using firmwares from 3.0 to 5.0 to downgrade or upgrade my iPhone.
4. Add new hosts to my Host file
5. Try sn0wbreeze and use IPSW to see if it is recognized by iTunes (iTunes recognizes the iPhone but then at the very last minute shows error 20, 21, 3194 or 1600.
6. Save SHSH files and use Tinyumbrella to uploaded them to my iPhone.
I would really appreciate if someone can help me on this. I might be doing something wrong or maybe not even considering the right steps to solve this issue. I don't know if there are missing drivers that are preventing the device from communicating with iTunes properly. Of some tool that can be used to correct this problem. It may or may not be fixable but I think it is worth the try.
Thanks very much.

I have the exact same problem as you (minus the coffee incident) where the phone just turned off. Tried everything you have too and now the above link is showing a 404 page... Can you help me out?

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Thank you for providing the details of the issue you are experiencing with your iPhone.
I recommend following steps 2-6 for an issue like the one you described:
If a single application is not responding or stops responding when it opens, you can force it to close.
If the device is unresponsive or if certain controls aren't working as expected, restart your device.
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Help with iPhone 3GS (not restoring, seems to be in loop)

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