iTunes error (1) & stucked in Recovey Mode!

Hi . I tried to restore my Iphone 4s and the first time i tried on my lap top running windows 7 x64 i got erroc code (1) on iTunes , tried few more times and still the same error , so i decided to try it on another computer , and it failed in the other computer too , the same error code (1) and later i decided to give it one more try in my lap top and it restored just fine , 2 days later i recived a message that my iphone is unlocked to be used with all carriers and i had to restore the iPhone in order for it to be unlocked so when i tried this time i got again error code (1) and im stuck into recovery mode , tried different ways/softwares to get out of recovery mode and when the iphone tries to restart it goes straight again into recovery mode . The restoring process stops almost in the middle ( 70% or so ) , first time i was thinking its an hardware issue but it worked once and ive been trying all day today and it just keeps failing to restore with the same error code , if theres someone who has any idea or solution of what should i do next or it is really an hardware issue and the iphone has to be replaced , sorry for my bad english , any kind of help/answer would be appreciated .