First do the following : hold down the Power and Home buttons until you see the Apple logo, then release BOTH buttons, allow phone to boot, hold down the Power and Home until you see the Apple logo, then release BOTH buttons, your iPhone should now work right, if not, than do the following:
WARNING: restoring your iPhone cant take some time!
Follow these steps, yes they work I've had to do this twice now.
NOTE: You need to be plugged up to your computer for this to work
1. Hold down the POWER and HOME buttons untils your phone reboots.
2. Hold POWER button until the iPhone powers OFF
3. Hold POWER and HOME buttons, iPhone will now power on.
4. When you see the
apple logo, release the POWER button but keep holding the home button.
5. iTunes should alert you now saying that it has found an iPhone in recovery mode, proceed to recover as normal now.
Also the iPhone screen may go white after doing this until restored, this is normal, it's not broken.
Is your phone jailbroken, or normal limited? if its jailbroken ,you can get IReboot or an app like that which can reboot your phone. but if its the 3G iphone, its stull under warrenty. Make it repaired by apple..
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