Hi bgrosvenor1
This is what I did to fix the problem. My phone works fine now. I used a Windows computer to do this.
1. Download and install iOS 4.1 (You'll need to search for it - it is easy to find)
2. Download the software called "TinyUmbrella" (Please search on the internet)
3. Open iTunes, connect the iPhone throught USB
4. In iTunes, click the iPhone (on the left pane). You should be able to see the "Restore" button on the right side.
5. Press "Shift" and click restore. You'll be asked to browse the iOS ipsw (installation image). Please brows to the folder where you have saved the iOS 4.1 ipsw and select it.
6. iTunes will start installing iOS 4.1 to your iPhone and will go till the error message (1015). DO NOT CLICK OK - JUST LEAVE IT AS IT IS !!!
7. Open "TinyUmbrella". Click on the iPhone and then click "Exit Recovery' button.
You are all set !!!
Let me know if it helps - Thanks !!!