iPad 3rd generation unable to restore w/iTunes

So recently my iPad 3 crashed with a panic error screen with the apple logo.

I restored it two times using a reset with iTunes, and every time after restore it would work for a few minutes, glitchy, resetting randomly, and finally both times it went to the panic screen from which I couldn't do a thing other than restore. Except the 3rd time iTunes is stuck in "preparing iPad to restore", while the iPad itself only shows an Apple logo and it doesn't advance. Eventually it goes back to showing the panic screen or it stays stuck on the apple logo.

Any suggestions? or should I sledge hammer the thing?

Thanks in advance