IPhone stuck in recovery mode? - 1

I plugged in my iPhone 4 to my laptop to get the new software but when I did, something happened and now it's stuck in recovery mode. I've turned it off and on multiple times but all I see on the screen is the white apple and an empty loading bar. I've plugged it in again and again but each time iTunes spends time loading but eventually says, "error 1603." I can't use my phone what so ever. The nearest Apple store is an hour away so getting there isn't convenient. This phone is a year and a half old and struggles to hold all my storage as it is; I have only 1 page of non-default apps that don't take up many bytes. Can it be fixed or should I just visit Verizon and shoot for the 4S or 5? And if I should just get a new phone, should I get the 4S and download the new software or go with the 5?

Do not panic. It is just a software error.
What you have to do is the following:
1) Go to the site: http://www.felixbruns.de/iPod/firmware/
2) Download the firmware named: iPhone 4 (GSM or CDMA) (6.0/10A403)
3) Plug the iPhone 4 into the laptop.
4) Hold the Home and Power Button at the same time for 10 seconds.
5) Once done, iTunes should pop up.
6) *READ CAREFULLY* Now HOLD THE SHIFT Button on your keyboard and click the restore button.
7) Another screen should pop up.
8) Look for the file named "iPhone3, 1_6.0_10A403_Restore.ipsw" - the file that you had just downloaded.
9) Click on that file. And then Click OK. It should then be restoring.
10) Do it multiple times if you keep getting an error.
===…
Extra Information:
-When you download the file given above, there are 2 different files. One GSM the other CDMA.
If you have AT&T, download the GSM File.
If you have Verizon, download the CDMA File.

-If it still does not work, you could always sell it to me for $150. Email me if you are interested.