my fon was from my sister from alaska coz she have her new 3G...
i put on a SMART sim and it worked fine...
but when i plugged it in to my PC that has got an iTunes V7.7.1.11
it says "you're iPhone is defected and cannot do any servicing and suggests to take it to a nearest apple store"
.... my iphone is still charging though and not defective... im still using it now....

can somebody please give me some HELP...
thank you guys in advance!

download the latest iTunes (v8.0.1)) to make it work.