IOS5.0.1 constant error "iPhone can not make or receive calls.  Restore from iTunes":  I get this message and the phone will no longer work (happend once while on airplain mode and now once while in wifi only area, out of cell range).  help!

All- I get this message ("iPhone can not make or receive calls. Restore from iTunes" (happend once while on airplain mode and now once while in wifi only area, out of cell range)). iPhone 4.  Newest OS.  Never happened with old OS! Cycling phone on/off does not help.  Ignoring message causes phone to cycle off then on.  After first time this happened, I restored.  Six days later...same problem!  Clearly a new fix is necessary.  Suggestions? 

I have not tried that...I will look up the process so that I can do it correctly (and still transfer all of my files, contacts, etc).  Any suggestions?  What is the advantage of restoring as a new device..is this more akin to a complete wipe of a hard drive?

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