Try putting the iPhone into DFU mode by doing the following :
Hold the home and power button for 10 seconds.
Let go of the power button, but KEEP HOLDING the home button until iTunes has reconized your iPhone.
And then click 'Restore'. It will restore the device & maybe update the iPhone, if the iPhone isn't updated already.
Hope this helped!
I was able to execute this process, but it still did not complete. Itunes finally went a couple of steps farther in the resotre process. It went from "extracting software" through its different phases and stopped at "verifying iphone restore with apple". It acts as if it completed the verify and then before going to the next step, it just pops up a prompt saying, " This iphone cannot be restored (error 9)".
I have repeatedly received error code 2009 until i executed this process. Seems like this was an improvement though.
Thank you and anything else???