I had a strange method of Fixing the 23 Error on my 3G, It suffered a power surge, so I tried various methods of trying to fix it or how to find what was wrong with it. In the end, I got bored and went and Jailbroke it with the Latest Redsn0w (0.9.14b2), and it went through the process smoothly and then went out of the recovery loop it was in and straight into the Homescreen! No idea how this fixed it. It just did :P. Anyway, if you're desperate for a fix, give this a go :)