Thank you for the detailed instructions. Unfortunately, after meticulously following the procedure, the restore fails in the same way.
Itunes reports an unknown error (1) - see attached screen shot. The progress bar on the iPad2 is stuck at about 60%.
Tried different cables, different USB port, same at Genius Bar.
I paid $30 today to have a company diagnose the problem. They said that they were unsure of the problem, but for $45 more they may be able to repair a bad boot ROM. I thought I would explore this forum some more before I pay. I am skeptical that this is a hardware failure since it happened precisely when I attempted an upgrade to IOS7.
Any other ideas?
Unfortunately, it does sound as if you have a hardware problem on your iPad2. If neither you nor the Genius at the Apple store can get it to work and the "fail safe restore" directions don't help - I'm afraid there is nothing more we can suggest.
Yes, it's a bit odd that this happened right at the upgrade to iOS 7, but I guess it could have happened at any time, so why not when you were putting stress on all the bits and pieces while installing a major upgrade...?
Now, I couldn't tell you if what the person who gave you the quote for fixing the boot ROM is correct (I don't deal with hardware). Hopefully, someone else can give you an idea on that...
Unfortunately, as far as I can tell, it's a repair or a new iPad. Sorry.
Marilyn
P.S. A "last ditch effort" thought: when the person at the Apple store tried to upgrade your iPad, did he just do the regular "plug in the iPad and hit the restore button" procedure? In other words, did he try putting the iPad into DFU mode and restoring it from a fresh IPSW file? If not, what if you take your iPad to someone else's [fully updated] iTunes and see if the fail safe instructions/DFU mode work? I would suggest trying it with a new download of the 7.0.2 IPSW and simply start over.