Cannot unlock iPhone 4s after restore

When I tried to updated the software on my iPhone 4s, it went into recovery mode and I had no choice left but to restore it. It just turned on now and is asking for the apple ID. I entered my ID but as shown in the screen grab below, it's not working. I changed the password and tried to log in again but it showed the same error.

Why is this happening? What should I do? I know the ID and password are correct because I logged in here with the same apple ID.