i was told by itunes my phone needed an update to 6.1.2. I did it, and now my phone is stuck in a reboot loop, and no wifi, phone, or bluetooth.

See Here > http://support.apple.com/kb/HT1808

You may need to try this More than Once...

Be sure to Follow ALL the Steps...

That usually means that your antivirus and/or firewall is blocking access to Apple's servers, or your phone is jailbroken or hacked. It can also mean that you have a hardware problem. See: http://support.apple.com/kb/TS3694#error1

The "factory unlocked" caught my attention, as there is no such concept for an iPhone. There are only 2 ways to get a legitimately unlocked iPhone: Either buy it directly from Apple, or have the carrier it is locked to unlock it. If either of these applies I will believe that it is unlocked legitimately. If it is neither of these it was probably hacked to unlock it.

To expand on Error 1 or error -1, it means the phone is not eligible to be activated. This can be due to a defective SIM, a hardware problem, a baseband that doesn't match the iOS version (in other words, a hacked baseband), access to gs.apple.com blocked by antivirus or firewall, or a redirect for gs.appple.com in the computer's hosts file. You can check this last by opening the hosts file. On Windows it's location is:

c:\windows\system32\drivers\etc\hosts

On a Mac:

/etc/hosts

ccsoh wrote:

okay i may have called it wrong, we got the unlock from AT&T when our contract was up. We did this because we were thinking of switching to another carrier.

I checked the hosts file, and there is nothing refering to gs.apple.com. Should there be?

Is it possible to restore it back to 6.1?

No problem; it's just that many people buy what they think are "factory unlocked" phones, but the "factory" is the back room of the shop where they bought it.

gs.apple.com should not be in the hosts file (the only reason it might be there is if some hacking tool had been used on the computer in the past; not just jailbreaking tools, but tools to downgrade the OS and perform other unsupported functions).

You cannot restore back to 6.1; you need to resolve the problem with the latest version. Even if you could revert it would not solve the problem. You need to figure out why iTunes can't communicate with the activation servers. If you have another computer, try restoring on that, or take the phone to an Apple store and let a "genius" deal with it. Or, if your antivirus is Kaspersky, delete it completely, as it's impossible to turn it off completely, and it has taken a dislike to things Apple.