If by locked out, there is a password on the restore file, you will most likely have to set it up as a new iPhone in iTunes.
Have you tried plugging the phone into your computer, restoring the phone from iTunes and it is asking you for a password? If it is and you do not know what the password is, you will have to start from scratch and set it up as a new iPhone.
Didn't say you needed internet access at home. Do you have a computer you sync your iPhone to? Plug it into that computer and either restore the iPhone or set it up as a new device.
If you don't have a computer or internet access or your unlock key to get into your phone, you will most likely be stuck with resetting your phone. You could try going into an Apple Store to see if they can help.
To reset your iPhone without a computer(this will erase EVERYTHING on your phone), press and hold the sleep/wake button and the home button at the same time. Continue holding them for at least 10 seconds, until the Apple logo appears.
I tried that lastnight and it wouldnt let me because i hd that stupid passcode thing... i have no choice but to go to verizon store for them to restore it. But thanks for the info. It sure was helpful...
You do not have to go to Verizon store to fix this. Plug into computer and have iTunes open, hold the home and power button until phone goes completely blank (past the slide to turn off screen). Then let go of power button but continue pressing home button. Make sure speakers are turned up and as soon as you here the beep (10-20sec) let go. iTunes will now recognize it as a brand new phone and you can restore. Hope this helps. This will reset everything on your phone so you will lose anything that isn't previously backed up on iTunes. What RC said above about resetting with home and power button until apple logo pops up will not erase anything. That is a soft reset, everything will still be on there that was before.