How to Bypass passcode screen?

I got a iPhone 4 CDMA that I purchased not powering on. I was able to repair it but it is a password locked phone..After looking online for solutions i was told to restore it..Which I did and I had multiple update error codes like 3004 and 3194

After solving those by deleting the host file, i finally got through then i got the following "The iphone can not be restored, The device can not be found" and then i get another screen telling me that itunes can connect due to the password lock.

Any ideas as what I should do next? would jailbreaking remove the passcode?