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I keep on getting "This Apple ID is not available" on my iPhone ? what does it mean and how do I fix it ?

You are getting this message because iTunes is confused about your Apple ID and password. If you ask me, it is a bug with the way iTunes handle the verification process.

I also noticed that it happens after I try to restore.

The easiest way to fix it (worked for me perfectly), is simply to go to http://iforgot.apple.com and change the password.

Please let us know how it goes. Worked here on my iPad with no problem at all.