iPhone 3G White screen of death

I dropped my iPhone and now it only displays this white screen. sometimes there are vertical blue or red lines spread evenly across the screen. Please help as I do not know how to fix it. I have tried holding the home and sleep buttons down together. I have also tried restoring it with iTunes, but it gets as far as "preparing iPhone for restore" and then comes up with error code 1604. I have not yet replaced the LCD because I am not sure if that will definitely fix it. Thanks