My iphone 3gs is stuck on connect to itunes screen and it keeps looping with the apple icon screen if I try to reset it, can anybody help?

This happens some times...nothing to worry about..

-.Try the restore through DFU mode...

-.If your mobile is showing the usb cable on its screen then in that screen condition press the home and power button simultaneously till the screen becomes blank..

-.Now when it becomes blank then leave the power button and keep holding the home button for another 7 sec and then release it and now try connecting to the itunes and click on the restore button...this should be helping you out....

Please reply if you need any more help...Happy to Help.....

Ignore sandeep. Don't use DFU mode. You need to use recovery mode.

http://support.apple.com/kb/HT1808

Placing your device into recovery mode

Follow these steps to place your iOS device into recovery mode. If your iOS device is already in recovery mode, you can proceed immediately to step 6.

1. Disconnect the USB cable from the iPhone, iPad, or iPod touch, but leave the other end of the cable connected to your computer's USB port.
2. Turn off the device: Press and hold the Sleep/Wake button for a few seconds until the red slider appears, then slide the slider. Wait for the device to turn off.

   If you cannot turn off the device using the slider, press and hold the Sleep/Wake and Home buttons at the same time. When the device turns off, release the Sleep/Wake and Home buttons.

3. While pressing and holding the Home button, reconnect the USB cable to the device. The device should turn on.
   Note: If you see the screen pictured below, let the device charge for at least ten minutes to ensure that the battery has some charge, and then start with step 2 again.
   
4. Continue holding the Home button until you see the "Connect to iTunes" screen. When this screen appears you can release the Home button:
   
5. If necessary, open iTunes. You should see the following "recovery mode" alert:
   
6. Use iTunes to restore the device.