IPhone4 stuck in recovery mode after iOS5 update

Hi guys,
hope someone will be able to help.
I bought a second hand iPhone 4 from ebay and all was well when recieved.
However I then tried to update to iOS 5 a few days ago and iTunes said "an unkown error occured (-1)" during the restore and now my phone is stuck in recovery mode.
I took the phone to a local apple store where a genius told me that the phone had had a "dodgy" repair in the past and so they were unwilling to work on it.
I have tried many methods to exit recovery mode but none have worked.
I will be happy to even stay on iOS4 forever as long as I get my phone back and workable.
FYI, before the update to iOS 5 all updates  were succesful and never encountered a problem, the phone has never been jailbroke or hacked in any manor.
PLEASE HELP!

Look what google found! Amazing how that works eh?
http://iphone-downloads.hubpages.com/hub/Fixing-1604-iPhone-Restore-Error--How-T o-Go-About-Fixing-1604-iPhone-Restore-Error
also:
*Error 1604*: This error is often related to USB timing. Try changing USB ports, uninstalling and reinstalling USB ports, and other available USB troubleshooting steps (troubleshooting USB connections, device not recognized properly, computer won't recognize a FireWire or USB device). If you are using a dock, bypass it and connect directly to the USB 30-pin dock-connector cable. If the issue persists on a known-good computer, the device may need service.
If the issue is not resolved by USB isolation troubleshooting, and another computer is not available, try these steps to resolve the issue:
1. Connect the device to iTunes, confirm that the device is in Recovery Mode. If it's not in Recovery Mode, put it into Recovery Mode.
2. Restore and wait for error 1604.
3. When prompted, click OK.
4. Close and re-open iTunes while iPhone remains connected.
5. iPhone should now be recognized in Recovery Mode again.
6. Try to restore again.

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