OK
So I have been getting the 3194 error when trying to update my iPad 2 to iOS 5 Beta and finally got it to work.
Make sure your "hosts" file matches the data from this link: https://discussions.apple.com/thread/3083715?start=0&tstart=0
I had 64-bit W7 and had an entry at the bottom of my host file that wasn't supposed to be there. After I deleted it and restarted my computer, I was able to successfully update to iOS 5.
Otherwise, just update to iOS 5 on someone elses computer. That also works.
worked like a charm. apparently if you ever edited your host files to downgrade (saurik's own downgrading method), then it screws up the updates.