Difficult iPhone 3GS problem

[-Superman-]

Okay this exactly what happened, I upgraded my iPhone 3GS from 3.1.3 to 5.0.1 it got stuck giving me a error 29 hanging on recovery mode, it only booted if I used fix recovery on redsn0w 0.9.10 b3 BUT it kept rebooting every 1-5 mins regardless of what I tried I jailbroke it untethered and it still kept rebooting I tried restoring and jail breaking on 2 different computers running the newest iTunes and redsn0w with no result AND now Cydia doesn't even load anymore it crashes every time I start it up. So any help you guys could provide would help cuz I'm stumped I looked around and they said it might be a hardware problem given the panic.plist and reset counter on the diagnostics and usage but I don't think that's it since its been working fine on 3.1.3 since it came out which was years ago and only started when I upgraded to 5.0.1

[xboxbml]

Did u do a Restore to 5.0.1 and not update?...try putting into dfu mode n click on restore..

[-Superman-]

I can't not update its original firmware was on 3.1.3 and when I updated it the first time the update basically completed but in reboot thats when wit gave me error 29, and I've tried regular restore and restoring in DFU mode the results are the same either way it gets stuck in in recovery loop and when I use fix recovery it loads up using 5.0.1