My phone will not restore or otherwise work. How do I find if my phone is worth keeping without spending money?

I have an iPhone 3GS. At first my phone was dropping service, then I got a pop up from the phone saying to fix this problem restore phone to iTunes. When going onto iTunes I choose to restore to original settings and update to iOS 6. After waiting for the phone to restore, an error came up saying there was a problem restoring the iPhone. So I tried again and the same error comes on. Now I can not access my phone and my phone is set at factory settings. I went back onto iTunes and iTunes does not register my phone. What do I do?!?  

Take it to Apple for evaluation. There is no charge for an Apple Genius to l
look at your iPhone. Make an appointment to avoid delay.
Make a Genius Bar Reservation
http://www.apple.com/retail/geniusbar/

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