Latest Restore Problem

Hi There, I seen to have a problem, un-like a few others on here! When I pluged my Iphone into my computer because I needed to re-charge, I saw there was an update available, so I agreed to except it.When I thought my phone would have been recharged, I saw a logo that I have never seen before, but now understand that its the symbol for "reset" I think? I have tried so many times to put my Iphone back to "Factory Settings" and then try to re-installl from my backup, but no matter whay I try, I cannot get the phone to work, I have had "Error1340" and the other one I get is "ITunes could not restore the Iphone "Davey's IPhone" because the backup is corrupt or not compatible with the IPhone that is being restored. Can anyone help, my whole life is on my IPhone and cannot live without it!!