"restore needed", need password

My iPhone 3GS keeps popping up with a "Restore Needed" alert along with the image of a cable being plugged in to iTunes. It will only let me make emergency calls. However, when I plug my phone into iTunes, it says that I need to enter my password on my phone to use iTunes. The phone will not let me enter any numbers, so what am I supposed to do?
I tried restarting both my phone and computer, it is fully charged, called Apple, and I tried (and failed) to force it to restore. Any suggestions?
Message was edited by: mimz3

I got the same problem.
I restored many times and still getting the same No Service and "Restore Needed". Did you repair your iPhone?
I don't know what to do now because I bought this iPhone in UK Apple Online Store, but now I'm in Malaysia..

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