I have a factory unlocked iphone 4. It has never been jailbroken or hacked in anyway. I tried to update to iOS5 via iTunes 10.5. At the end of the process I got the error "There is a problem with your iPhone. We're sorry, the iphone you connected is not recognized and cannot be activated for service... visit your Apple Store." See attached screen shot. I believe it was running iOS 4.3.5 prior to the update. I've tried manually installing because I thought maybe the internet connection wasn't stable enough to download the huge file. But I get the same message. I've gone into DFU mode multiple times and tried to restore, but always the same.
I am very very far from the nearest Apple Store so I'm wondering if I could try reinstalling iOS 4.3.5 or 4.3.3 by downloading the old ISPW file and manually restoring. Will that further mess things up? It will be about 2 months before I can get to an Apple store.
I've tried searching all kinds of forums and saw that others had the same problem, but no solution was given except try to go to the Apple Store. I can't even use it as an iPod touch because the phone doesn't go beyond the "this phone cannot be activated" screen on the iPhone setup.