My iphone 3g wont even scan for wireless networks

i have done numerous things,

i have reset my network settings, i have reset the whole phone settings, i have been into o2 gurus online twice and have got network settings etc sent to my phone, i have reset my router

the laptop and my partners phone connect fine to the internet which makes me think its a phone problem

when i turn on wifi, the wee wheel just keeps turning and never picks up any connections,

when i try to manually input a wifi name, as soon as i press done, a message appears saying 'could not scan for wireless networks'

O2 have quoted me around £120 to send them the phone to fix, the phone isnt worth even that, its a iphone 3G, 8 GB

i was only out of warranty there at the end of january but due to my father being serious ill over the last few months i never got the chance to get it fixed,

thanks

would to restore as new wipe out everything on my phone?

i might have only done a restore from a previous back up!

thanks

Thanks for your help with this,

will it wipe my contacts?

i will try and reset it from new then i think,

not worth paying the money to fix it, could buy a new one nearly

asking about too in the area, via facebook, for a 3rd party repair shop

thanks again