IPad 1 32 GB  with sim- OS5 in reboot cycle - Itunes freezes

My Ipad showed a popup saying it couldn't call anymore and needed reactivating. I restarted it (pressing the two buttons until the red slider showed) and it has been in a vicious cycle for hours now showing the black screen with the white apple - then the startup page with a popup saying "activation demanded". When i slide the slider it asks for a network I show it my wifi and i get a grey screen saying it will take 3 minutes to reactivate. But after a while a black screen slides across and the whole cycle starts again.
If I try to connect to my mac (running Lion and latest edition af itunes) ITunes freezes.
I've tried ejecting my SIM card, but it doesn't change anything...
Can anybody help me with my problem?

have this problem too.
I was in a trip to Singapore when i put my device on airplane mode. BTW im using and iPad 3G (first Gen). When I turned off airplane mode I do see a message that my iPad needs to be reactivated.
I turned the iPad off and when I turned it on im on the activation process, also tried to activate it via wifi and still a black screen slides and it restarted, same goes when you try to activate via itunes. restored and everything still same problem.
I do wish anyone can help us enlighten this issue.

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