Apple’s Activation servers are having issues with activating iOS 4.3.3 and possibly other iOS firmwares. The issue started Friday the 13th. (obviously an unlucky day!) There has been many reports of users having this issue on Apple’s discussion forum. They get the error: “There is a problem with your device…” “We’re sorry, the device you connected may be damaged and cannot be activated for service. We recommend you visit your nearest Apple Store for more information…”
It appears that the servers are now working again! If you are having this problem just wait a few minutes with your device plugged into iTunes and wait for it to activate.