Iphone 4 will not restore using recovery mode.

You can put your iPhone into Recovery Mode to unlock it. This will allow you to restore it without needing the passcode.

Step 1. Disconnect all cables from your iPhone and turn it off.
Step 2. Press and hold the Home button and connect your iPhone to iTunes. If your iPhone does not turn on, please turn it on manually.
Step 3. Continue holding the Home button until you see the Connect to iTunes screen. iTunes will remind you that it has detected your iPhone in recovery mode.
Step 4. Click OK. The Summary tab in iTunes appears. Click "Restore iPhone" and restore your iPhone.
Step 5. Once the restore process is complete, you'll be prompted to setup your iPhone as if it were new. If you have an existing backup, you'll be able to load it.

Recovery Mode will erase all your data and passcode from your iPhone, resetting it to factory defaults. Thus, you'll have brand new iPhone without any personal data after you unlock a disabled iPhone with Recovery Mode. Therefore, please consider carefully whether you need to use this method to fix the issue.

http://www.leawo.org/tutorial/how-to-unlock-a-disabled-iphone-with-without-itunes.html

If you're stuck in Recovery Mode, you can follow below steps to exit this mode with ease.

When your iPhone get stuck in recovery mode, the most recommended way to solve this program is to restore your device with iTunes. It works most of the time but you might lose some of the data on your iPhone.
Step 1. Open iTunes and connect your iPhone to your PC with USB cable. A popup would show up. Click OK.

Step 2. Click the iPhone icon on the upper left corner to open Summary tab. And then click Restore iPhone.

Step 3. On the following popup, click Restore to confirm that you want to exit recovery mode by restoring your iPhone to factory settings.

Step 4. When the restoring process is done, you can click Restore from backup to select an old backup of your iPhone in iTunes and load the data back to your device.


For more details, check: Methods to Help iPhone Exit Recovery Mode

You can try Leawo iOS Data Recovery to fix this issue and it's effective in restoring iPhone in DFU mode. Just check below steps.

Step 1. Run Leawo iOS Data Recovery and choose Recover from iOS Device.

Step 2. Connect iPhone 4 to computer with USB and choose DFU in the pop-up dialog.

Step 3. Follow the tutorial and enter DFU mode on your iPhone 4.

Step 4. The program will communicate and scan your iPhone 4. When the scan is done, select the files you need and click Recover.

Step 5. Click Open in the pop-up dialog to choose a target folder on your computer to save the files. Then click Go to recover deleted files from iPhone 4 under DFU mode.

When the recovering process is done, you will get the files in the target folder. If you want to exit DFU mode on your iPhone 4, you only need to click Exit DFU Mode at the left bottom of Leawo iOS Data Recovery.

For more details, check: How to Enter DFU Mode and Recover Deleted Files from iPhone

Your iPhone is currently on disabled mode after entering wrong combination of password. There are several ways to gain back the access to your iPhone:

First Method: iTunes
1. Using your computer, open iTunes where you have recently backed up your iPhone.
2. Connect your iPhone. Once your iPhone is detected, a notification will appear to enter your passcode. Note: If the lockscreen doesn't show, proceed to next method.

Second Method: Update
1. While your iPhone connected to iTunes, powered on. Hold down the Power key + Home button simultaneously until the screen off, keep on pressing the Home button then release the Power key until iTunes detected that your iPhone is on Recovery Mode. Note: An iTunes logo will appear on the iPhone when Recovery mode is enabled.
2. On iTunes, click on Update iPhone. It may take a while to download the software, so leave it for a while connected until the installation complete.
3. Once updated, try unlocking your iPhone. Note: If you still can't unlock your iPhone proceed to next method.

Third Method: Restore (last option)
1. If method 1 and 2 fails to unlock your iPhone. Then try to restore your iPhone into its factory default and restore your backup after.
2. Go to recovery mode. See method 2 step 1 process to enable recovery mode.
3. Then choose Restore iPhone. Note: Restoring your iPhone will delete and remove all of your data including apps, music, photos, messages, contacts, notes, etc.
4. It may take a while to download and install the software, so leave your device connected until the process complete.
5. After your iPhone has been restored, choose restore from a backup or iCloud, then wait until your iPhone successfully synced your old data.
6. Try unlocking your iPhone.

-joshd

Try putting your iPhone in recovery mode.

follow the link to see all the information you need.

Succes! How to Put iPhone into Recovery Mode

You need to restore your iphone. Go to your pc connect your iphone and open itunes and it will say...itunes has detected iPhone in recovery mode. click ok and follow the directions, no other way to do this.. restore

try to do one thing that is press the start and home button together and then see

Try restoring in DFU mode, which is different than recovery mode. I happened to stumble across it while trying to restore an iPhone 3G that a user unplugged in the middle of the 3.1 update. It kept showing an error of 1611 or 13 and wouldn't restore in recovery mode. I found this DFU mode option and the restore worked fine. The DFU mode keeps the iPhone OS from loading, so you don't run into as many compatibility problems. Go into DFU mode, then try restoring the phone and see if that works.
http://techierambles.blogspot.com/2009/09/restore-iphone-with-error-13-or-1611-in.html
To enter DFU mode:
1. Connect your iPhone to your computer
2 . Turn iPhone off. You may have to hold the power and home buttons down together to force the phone off
3. Once the phone is off, hold the power and home buttons together for 10 seconds exactly
4. After 10 seconds, release the power button but keep holding home until the computer recognizes that a USB device was plugged in
5. iTunes should detect your iPhone correctly, and also allow you to restore to the factory default settings