Okay so here's the short version:
I bought and unlocked an Iphone from the US (I live in Canada) in May 2008...about 5 months ago. I bought a Rogers sim card and everything has been wonderful, until last week.
I started getting the Repair Needed message and did some research. And yes I had been using a magnet case hence the problems!! So I waited to see if it would go away, but it didn't. So I tried restoring it and following all sorts of instructions. Every time I restored I would get a different error, 1011 the only one I couldn't make go away. For a couple days it was suck at the connect to itunes picture, but eventually I could turn it on again. Now it's been over a week with no calling, texting or speakers.
Now I feel that I have gone as far as I can without completely breaking the phone all together. So I have called Apple Support to see if they would send a new iphone/repair it. Though I know I voided the warranty when unlocking it. I asked if there was anyway to fix it and she told me ... if you remove the 3rd party software you can send it back. So my question is how do I do this? What does she mean? Should I put the original sim card back in?
Please help me

I am desperate. It's an IPhone 1st generation if that's important and unlocked with ZiPhone.