Here is Apple's answer to error -1: http://support.apple.com/kb/TS3694#error1
As error 1 (or -1) indicates possible hardware failure, and your original symptom is also possible hardware failure, I would take the phone to an Apple store for diagnosis and likely replacement.
For your original problem, it's also possible you have a bad SIM or AT&T messed up your account provisioning, so calling them is a good place to start.
The other possible cause of error -1, which isn't mentioned in the above article, is a jailbroken phone. You would probably know if it was jailbroken.
You just responded to a post made over 2 years ago. I suggest posting a NEW message in the forum, and describe in more detail what your problem is, such as what happens when you try, and what error messages you get. There are dozens of possible reasons you may not be able to restore, and listing all of them is not a practical way to resolve the problem.