Iphone 4s is locked, Itunes doesn't help

I have an iPhone 4s the is disabled (due to multiple tries of wrong passcode).I do know the code but cannot put it in, the message display on the phone says "iPhone is disabled - connect to iTunes". When I connect to iTunes I get a message on iTunes

"iTunes could not connect to the iPhone "iPhone" because it is locked with passcode. You must enter your passcode on the iPhone before it can be used with iTunes"

I have tried the hard reset with home button and power sequence - no luck

Please help, I have a sad child now :(