"Cannont Connect to Apple Server" while trying to update iOS to 4.0.1

I have jailbroken my i4 and am now trying to update to 4.0.1. It keeps saying that it "cannot connect to the apple server or it is unavailable" please try again later. I've made sure I'm on the latest iTunes and I have rebooted my system (64 bit Windows 7 Home Ultimate).

Any other ideas?

I've done some research and have checked the host file in c:/windows, made sure there are no proxy settings and I have good internet connection.

Thanks in advance.

Jim

Try this: turn your iPhone off. Open iTunes. Before you plug in, press and hold the home button. Keep pressing as you plug in. Keep holding the home button down until iTunes recognizes it and offers to restore. It should then offer to update as well...

It offers the update just fine. But after it unpacks the update and tries to confirm the phone with the iTunes server it fails. The .ipsw is downloaded already. I just can't get iTunes to install.

What is the exact error given..?

"The phone 'Jim's iPhone' cannot be updated at this time because the iPhone software update server could not be contacted or is temporarily unavailable. Please try again later."

BTW, I've saved SSH blobs via tiny unbrella if that affects anything.

Jim

Did you ever edit your host file for purposes of downgrading firmware via SHSH blobs stored with Cydia's servers?

i.e. did you add this to the end of your host file:
#74.208.10.249 gs.apple.com

If so, then edit your host file again and remove that line of info shown above. You should be able to update and restore without the error. After you do, you can just add that line back into the host file for future downgrading purposes...

Lmk

[edit] added the # to make it more clear as stated below from @It'sMeDavid

You have to restore before you upgrade any jailbroken iphone. Then upgrade. Hope that helps buddy

True...
Restore, upgrade, re-jailbreak (if need-be)
Is that the route you've been taking @flightmedic? Or have you been trying to upgrade without a restore?

I had same problem this solves it make sure u has a hash which is this # before the 74.xxx etc

I did all the above and still getting that error.

Long shot, but: Are you connecting over Wi-Fi? I've had trouble at work some times connecting over wi-fi and found that if I switched to 3G it connects with no problem.