IPad 1: Crashing on activation

iPad 1 3G, 64GB, iOS5
Yesterday my iPad displayed an error message that the device needed re-activation.
I plugged into my MacBook and attempted to activate using both iTunes (via USB) and my home WiFi connection. Each time I tried, the device would hang and then restart.
I then decided to put the device in recovery mode and create a clean install of iOS5. The installation worked fine and I was required to choose my language, location and location services preferences. The device then asked me to activate using either WiFi or iTunes. I chose iTunes, and after a minute or so the iPad screen went black, the Apple logo appeared and the device returned to the language selection page. I tried to activate the device again this time using WiFi but to no avail.
Each time I try to activate the device (either via WiFi or iTunes) it seems to crash after a minute or so and returns to the beginning of the activation process.
Any thoughts would be gratefully accepted - I am a couple of weeks out of warranty and I've run out of ideas.

Update 13/12
Just back from the Apple Store in Central London - after several attempts at a restore, the Genius had to give up claiming it was a "hard drive failure". £300+ for the privilege of a repair after 13 months ... I think not.

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