ERROR (3) UPDATE TO ALL,
I can't say much, but I do not need anymore log files from anyone to pass onto my contact at Apple.
You can take this statement to mean that something positive could be "happening". Keep following this discussion thread and if and when I'm permitted to pass on any more information, I will. I think the efforts of all in this thread has definitely made a difference. Chin up!
7.0.6 as many of you know have very, very important security features fixed in those iOS update. I suspect many of you who have been successful in Restoring their iDevice using one of the techniques discussed in this thread most likely still have 7.0.4 on their iDevice and have concerns about attempting another iOS Update until, and if, Apple issues an Error (3) fix, to prevent a reoccurance of Error (3) on your iDevice.
I honestly can not make a recommendation as to whether you should attempt to update your iDevice to 7.0.6 and risk "bricking" your device again. I can tell you that there is no "fix" for Error (3) in 7.0.6. The technical issue that causes Error (3) is a complicated one involving timing and Flash erase. If your iDevice is working now, Error (3) may or may not appear again if you do an iOS update to 7.0.6. If you try, and your iDevice gets Error (3) back again, you should be able to successfully Restore your iDevice again, with the "Freezer" technique, if that technique worked for you before, but I can not promise that it will work for 100% of iDevices. If you choosed not to update to iOS 7.0.6 now, you run a "real" security risk. You definitely should not do any operations with confidential information on your iDevice, such as any banking, until after you update to iOS 7.0.6.
If you do, or have, updated to iOS 7.0.6 from 7.0.4, on a device that previously had Error (3), but that you were able to Restore succesfully, using the Freezer or another work around technique, please share your results with this thread.