Iphone 3g Dismiss button stuck. Also no service available. Help?

This is has been doing my head in! I've just bought this iphone from Ebay, upon turning it on you unlock the screen and it comes up with the whole rearranging icons and whatnot. But the dismiss button is stuck and nothing works! People have come up with a solution for this problem, however their solution doesn't help me because it says I have no service so it can't recieve messages or anything. I don't think I'm able to take it back either and I don't want to sell it again.
Some one help? Like actually help I don't want any ******** answers. Thaaaanks!

By "dismiss" button, do you mean the home button?
Have you tried power cycling the phone?
Have you tried restoring as new via iTunes?
Is the device under warranty?

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