Fixed it. For some reason, Itunes on my laptop was not picking up the IPAD. I switched to my wife's laptop and voila. Itunes detected the IPAD in restore mode, but I had an error due to Itunes outdated version, I had to upgrade Itunes to the latest version. Tried again, detected the IPAD and restored it to Factory default.
Lesson learned: To restore IPAD to Factory default, make sure ITUNES is on the latest version, if it cannot detect the IPAD, check the cable, reboot, if all fails reinstall ITUNES. Once detected, if restore fails, read the log, it should tell you the reason. Usually ITUNES is outdated like in my scenario.
Also, make sure you backup your IPAD regularly using ITUNES.
Thank you all for your help.
Message was edited by: thefarmer