'Iphone may be damaged and cannot be activated for service'

Ive just bought a used iphone4. it arrived having been cleared and reset.
I connected to itunes and upgraded to the new software. Then it worked for half a day. Then a message came up saying i need ot restore the phone.
So i plugged it in again and at the end of the uprgrade sequence it comes up with-
'Problem with the iphone - may be damaged and cannot be activated for service' - please visit apple store.
Its obviously out of warranty and the apple store is a long way away. Ive only had it a day and im assured its never been jailbroken, dropped or water damaged.
I know loads of people have had this message come up and people have recommened going to the apple store. But before i make the long trek i just wanted to know if anyone ever came up with a solution to fix this and use the phone again.
Any help much appreciated. back on sh+tty blackberry!!

Thanks for the replies guys!
I cant access the phone it just stays on 'connect to itunes'
Could someone quickly explain how jailbraking an iphone could cause it problems? I want to email the person I bought this from and tell them why I think they have damaged it by jailbraking it.
I really appreciate this help bacuase ive shelled out £160 for this paperweight, Thanks.

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