iPhone 2g locked even after restore

[vinuneuro]

I just picked up an iphone 2g, and I'm not trying to jailbreak it or anything like that. I just want to use it. The phone was successfully activated by ATT through itunes. The problem I'm having is that no matter what I do, when I turn the phone on (sim installed) it shows the locked screen telling me to connect to itunes. It shows up in itunes, but there's nothing there. Called ATT who connected me to Apple, who told me to restore the phone. I did that, but it hasn't changed anything. Would appreciate some help, thanks.

This is what I see perpetually:

 

[kingnba6]

Hmm what are you restoring with? Have you tried to use a different computer?

 

[Ra1nMaKeR]

Try a DFU Restore.