Have you tried placing the phone into iTunes mode and then restoring the device through iTunes? If this hasn't worked, all sources point to this being logic board failure and may need to be returned to Apple.
The netbook has a pirate copy of Windows on it, or at least has been detected as pirate by Microsoft due to an update. I am assuming that this device does not come with a CD Drive, but I am assuming you have access to the internet as you have posted this question. You may wish to boot the device into Safe Mode with Networking to see if you can access windows that way. Failing that, attempt a system restore through the netbooks boot-up procedure. Worst case scenario is that you will need to reinstall windows on the device, either by plugging in an external DVD Drive or using a USB Bootable Windows Media.
After stripping the phone, and a few Google Searches, the culprit has been filth from the previous owner. To rectify, a fill tear-down was undertaken in which I was able to remove the filth from the earpiece speaker and from the grille internal. A pin was then used to clean the microphone hole at the bottom of the phone. Should a pin not be readily available, a staple is thin enough to clean the hole too. Once cleared, this resolved my issues with the phone.