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I am running itunes 10.2.1 (1).

Will try simply upgrade first --- thanks.
 
thanks for the link --

bad news.... iREB is not available for MAC yet...
 
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All fixed.

All I needed to do was to click "option-restore" to select my own ipsw file --- once that was installed - I was stuck in restore mode at I was getting the 1013 error.

To fix that I just unchecked "set hosts to cydia" ---

Then I tried restoring again and this time itunes downloaded its own version and installed it successfully.

Wheeeew! :)

Thanks everyone for the help!!
 
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