Please help!!!!

[iNoob]

Long read so bear with me please....

Ok, so I was on 1.02 (modded , not unlocked) and had all my apps running smoothly, except for a minor problem with customize. It was specifically with J'sclassicapple battery image, it wouldnt load for me, so I uninstalled then reinstalled it and my phone froze. So I rebooted, and i get to the apple screen when all of a suddenthe screen starts flashing between the apple logo and a white and black striped screen!
The wierd thing is the dock sunburst thing was visible on the bottom of the screen and still worked....sort of. The icons would pull up, but when i tried to use the app, it would freeze. So I was forced to restore and update to 1.1.1, but now I have a problem. My wireless will not work.
I have turned it on, selected my home wireless network, it says it connects, the signal bars at the top come up in full, but when I try to do anything over the internet (itunes store, safari, or installer), the bars disappear and it switches back to edge.
I restored again, and it did the same thing, I restored to factory network settings as per some advice I googled and nothing.

Can somebody please help me?