iPhone 4 won't power on and can't restore

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my wife calls me yesterday from another phone in a panic, "my iPhone shut down!" She said that it just shows the white apple on the screen and when she plugs it in, it shows the iTunes icon.

I tried holding the home button and power button down at the same time...nothing. Won't power on. Connected to iTunes to try to restore and keep getting error messages (either 2001 or 2006).

I called Apple and they said they would have to charge me $29 to trouble shoot it over the phone :)Angry:). I told them that it is under warranty and just to send me a new one. They said that i have to send it to them, they will work on it or send me a refurb. 7-10 days without a phone. Closest Apple store is 350 miles away. AT&T store (corporate) said they would have to send it off also. (end of rant)

Has anybody else had this issue with their iPhone just completing shutting down?
 
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No water damage. checked both indicators. i will try that method you provided in the link and see if that helps. thanks!
 

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