IOS 7.04 Itunes error (1)

I could do with a little help.  My iphone4 (not jailbroken) has been having an issue since i installed IOS 7.03.  The install crashed half way through and ever since, my phone just hasn't been right at all. It was working perfectly up to this point.  When I completed a restore on my phone and got 7.03 to work on my phone, it seemed that anytime the phone powered down or was switched off, that it then failed to reboot, meaning I had to move to recovery mode and restore the phone in order to make it work again.  I also noticed that 3G didnt work properly, whereby it would turn off, and then remain off.  I tried to install  IOS 7.04 in the hope that the issues would be resolved, but that was not to be the case.  I now can't even get my phone to restore and I am confronted by error (1) on both Mac and PC.  The restore gets as far as around 60%, where it tries to restore the firmware and then hangs there for about an hour.  It did something similar with IOS 7.03, both at home and in the Apple Franchise store where I live.  Both machines I have tried to restore on are up to date in terms of version of ITunes, and antivirus software.  I actually went through the trouble of removing my virus software to ensure it wasnt interferring with the restore process.  I've never had an issue with updates up to this point or with the phone for that matter.  Does anyone have an wizardy up their sleeve for repairing this problem?  I have been trying to restore it for the last few days.  I have tried going backwards to IOS 7.02, the last stable platform when my phone actually worked, but I get error 3194.  I don't want to jailbreak my phone.. not particularly anyway.  The only thing I have yet to try is a restore from DFU mode, but i don't know if that will help.  I reckon this is maybe the tenth time I have tried to restore it.  In addition to my restore problem, has anyone experienced issues with their handsets needing continual restores since the release of IOS 7.03?
Any help to rescue my phone will be greatly appreciated.

Thanks Rahul,
Yes I tried 7.03 and 7.02, both of which resulted int he error 3194.  I even tired to trick itunes by putting the 7.02 ISPW into the roaming directory, but renaming it as the 7.04 ISPW, but Itunes recognises that the file is not the most up to date and moves to update the IOS.
I have the latest version of itunes, so Im not getting error 23 which would suggest that some software was out of date, just the error (1) for which the advice is try to restore twice more, and if that fails, take the device for service.
I even took the phone to the local Apple fanchise and they are as stuck as I am, same error message and an age to attempt a restore.  They did the last restore for me for IOS 7.03 in store, and although it took a very long time to complete ( about an hour and a half) it did eventually restore... but still with some issues.  Like if the phone powered down or was switched off, then it would fail to reboot properly afterwards.
I'm due to take the phone to a bigger Apple store with a genius bar, but the appoinment is some time away still.  Of course that will just br having the phone assessed to find out what is wrong with it.  But in the meantime, I will keep trying to see if there is anything that I can do myself... though I'm pretty much out of idea's and think I may have to admit defeat tbh.
Thanks for your input though Rahul, I do appreciate it.

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