Got a problem need some input to figure this one out. Never had a problem with the phone and have been jailbroken for past two months. Been working fine but two weeks ago I did notice that my pictures were getting messed up. Thumbnails mixed up, incorrect thumbnail for pics, thumbnails and pics made up from combining pictures. This is only affecting the phone, computer folders, thumbnails and pics are just fine. (pic below, noticed how the grid lines are all messed up and thumbnails are half and half)

So I decided I would do a restore and start off fresh. Since the sms patch was out figured I would go ahead and let iTunes install it since it asked the other day. It went through the whole process and then I got a error saying unable to restore error # (different each time) then get a pop up saying iphone detected in recovery mode to click to restore and upgrade. Well this gets into a endless cycle of being stuck in recovery mode.

I tried downloading a fresh copy of 3.0, 3.01 and even 3.1 beta 3 ( I am on a developer account) but to no avail. I uninstalled and reinstalled iTunes and tried to restore on three different computers.
After 5 hours of this game I made a appointment at the apple store since it is under warranty to have it looked at. Well I gave it one more try and it took and activated. I synced the phone and everything was working better than ever. I did not jail break this time and a week later notice the picture problem started again. So I did a restore again and ran into the same problem. This time I just kept letting iTunes try the restore and upgrade and it took 7 try’s before it worked and got out of the recovery loop.
Now just three days later the picture thing is starting again… I don’t want to go though it again and now concerned about any future updates that might come out. Everything else on the phone is working just fine.
Any thoughts as to what the problem may be and how to trouble shoot it. The pictures getting messed up and phone not wanting to take a restore.