Q: I have just bought my first iphone, a 3gs, and it is displaying the 1015 error when I connect to iTunes, how do I fix this or have I been ripped off?

This Error Code is indicative of the Device being jailbroken / Hacked...

Sorry... But...

The discussion of Jailbroken Devices is against the Terms of Use of this Forum.

You will need to look elsewhere.

http://support.apple.com/kb/HT3743

Sounds like you bought an iPhone that was jailbroken, in other words, hacked. Return it if at all possible and make it clear you do not want a jailbroken phone. Did you buy it on eBay, or where?

Maybe. There's really no telling if it can be repaired since the device is jailbroken, and as AnaMusic said we cannot discuss hacked devices on these forums. I would escalate the issue with eBay.

You can try putting the iPhone into DFU mode and see if that will let you restore and remove the jailbreak:

http://www.iclarified.com/entry/index.php?enid=1034

Some jailbreaks cannot be removed and in some cases will permanently disable your iPhone. If that happens to you, then you will may to buy a new iPhone; Apple will provide no support, warranty or out-of-warranty, for a jailbroken iPhone. If the iPhone as advertised by the seller as being officially (or "factory") unlocked, you may have recourse with eBay to force a refund. Otherwise, you may well have to chalk it up to a rather expensive learning opportunity and buy another iPhone; this one from an authorized reseller, I hope.

Good luck.

Rather than bothering to try and repair it, which, if it worked, would result in a carrier locked phone, just file a claim with e-bay and get your money back.