IPad 1 keeps displaying "Activation Required"

Clicked on a "report problem" link in a receipt from iTunes.  The iPad said it couldn't connect to iTunes store.  I had wifi connectivity bars but a No Service message.  Rebooted the iPad and now it just says, "Activation Required."  I start the activation process and it says, "it may take 3 minutes to activate" then it restarts itself and the process starts over continuously.  I tried to connect it to my Mac to restore it.  It only shows up in iTunes while the "Activation Required" message is displayed, however, I can't click on the iPad in iTunes.  The iPad goes to restart itself and disappears from iTunes.  I can't reboot it.  I can't restore it.  How do I fix this?

@Bjorken72
First issue faced - 3G connection dropping frequently.  temporarily resolved by turning on and off cellular data. On one such switching  ipad asked me toactivate.  When I tried to activate, it did not work.
When I checked with the Apple Service centre - they told me that this is a hardware problem. 
How I overcame this problem is not scientific! 
Removed the SIM Card.
Inspected the Ipad - there was a corner which had a dent - it was probably from a fall / hit against something
Held the edges an inch or so  near this dented corner in both hands and kind of tried bending outward - not too much of force
Bingo! it worked, but lost all apps, data settings etc.  Been using it for the past 6 months - even with a simcard - no problem so far! (Touchwood!).  I do not switch off / power off the ipad anymore.  I just do a hard reset (holding power & Home buttons together)  whenever the ipad hangs or apps crash (yes! it does!)
I know this may not be a solution to your problem - but I can empathise with your frustration.  I thought I will reply even if the method I used to solve the problem sounds ridiculous!

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