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Suggest you pause use of VIRUS software and do it, worked for me. then restart virus when finished.
 
PROBLEM SOLVED

Just spend 45 minutes on phone to Apple. its was Kaspersky Virus Software, I had to disable it for an hour and all worked fine.

Very frustrating, could have update the s/w months ago.

Wll know for next time.

thanks everyone for the help

Just saw this. Glad you got it sorted!
 
I have another issue with an iPhone 3GS. Initially it couldn't charge, this is fixed now. I figured I might as well upgrade to the latest firmware.

I tried the solutions mentioned earlier on my PC with no luck I am now trying on my Mac. The iPhone is running 4.2.1 I'm trying to update it.

First download attempt on my MBP failed.
 
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