Make sure your network settings are correct and your network connection is active, or try again later; Have been trying to fix for ages.

Hi Everyone, been struggling all day to restore my settings on my ipod, as my little brother has put a restriction password in place and made me not able to get into Safari, iTunes, Camera which I really need. I have tried everything, resetting my proxy settings, turning off the firewall, changing my network location, ran diagnostics. Everything seems fine on that, I post below my results. I also tried restoring from the device, but with the restrictions code in place I can not do so. And everytime I am dowloading the software update before the restore it comes up with 'Make sure your network settings are correct and your network connection is active, or try again later'. I have been using google for ages and am not sure what I have missed.
I am using Windows 7 with an Acer Notebook.
DIAGNOSTICS:
Microsoft Windows 7 Enterprise Edition Service Pack 1 (Build 7601)
Acer Aspire One 753
iTunes 11.0.2.26
QuickTime 7.7.3
FairPlay 2.3.31
Apple Application Support 2.3.3
iPod Updater Library 10.0d2
CD Driver 2.2.3.0
CD Driver DLL 2.1.3.1
Apple Mobile Device 6.1.0.13
Apple Mobile Device Driver 1.64.0.0
Bonjour 3.0.0.10 (333.10)
Gracenote SDK 1.9.6.502
Gracenote MusicID 1.9.6.115
Gracenote Submit 1.9.6.143
Gracenote DSP 1.9.6.45
iTunes Serial Number 00BCBEE0093E4EF0
Current user is not an administrator.
The current local date and time is 2013-04-05 19:32:36.
iTunes is not running in safe mode.
WebKit accelerated compositing is enabled.
HDCP is supported.
Core Media is supported.
Video Display Information
Intel Corporation, Intel(R) HD Graphics
**** External Plug-ins Information ****
No external plug-ins installed.
**** Network Connectivity Tests ****
Network Adapter Information
Adapter Name:     {E1CB97AA-CDFF-4C43-8F63-658D7E70A39F}
Description:     Intel(R) Centrino(R) Advanced-N 6205
IP Address:     172.16.42.14
Subnet Mask:     255.255.255.0
Default Gateway:     172.16.42.1
DHCP Enabled:     Yes
DHCP Server:     172.16.42.1
Lease Obtained:     Fri Apr 05 19:01:59 2013
Lease Expires:     Fri Apr 05 20:01:59 2013
DNS Servers:     172.16.42.1
Adapter Name:     {44D6CC7B-1F1E-4F26-BBB8-18F98A868E2B}
Description:     Atheros AR8151 PCI-E Gigabit Ethernet Controller (NDIS 6.20)
IP Address:     0.0.0.0
Subnet Mask:     0.0.0.0
Default Gateway:     0.0.0.0
DHCP Enabled:     Yes
DHCP Server:
Lease Obtained:     Thu Jan 01 11:00:00 1970
Lease Expires:     Thu Jan 01 11:00:00 1970
DNS Servers:
Active Connection:     LAN Connection
Connected:     Yes
Online:          Yes
Using Modem:     No
Using LAN:     Yes
Using Proxy:     No
Firewall Information
Windows Firewall is on.
iTunes is enabled in Windows Firewall.
Connection attempt to Apple web site was successful.
Connection attempt to browsing iTunes Store was successful.
Connection attempt to purchasing from iTunes Store was successful.
Connection attempt to iPhone activation server was successful.
Connection attempt to firmware update server was successful.
Connection attempt to Gracenote server was successful.
Last successful iTunes Store access was 2013-02-14 17:34:33.
**** Device Connectivity Tests ****
iPodService 11.0.2.26 is currently running.
iTunesHelper 11.0.2.26 is currently running.
Apple Mobile Device service 3.3.0.0 is currently running.
Universal Serial Bus Controllers:
Intel(R) 5 Series/3400 Series Chipset Family USB Enhanced Host Controller - 3B34.  Device is working properly.
Intel(R) 5 Series/3400 Series Chipset Family USB Enhanced Host Controller - 3B3C.  Device is working properly.
No FireWire (IEEE 1394) Host Controller found.
Connected Device Information:
Daniel Pugh's Ipod, iPod touch (4th generation) running firmware version 6.1.3
Serial Number:     C3XDN3C5DCP7
Most Recent Devices Not Currently Connected:
iPhone 4S running firmware version 5.0.1
Serial Number:     C38GKQWZDT9Y
**** Device Sync Tests ****
Sync tests completed successfully.
Kindest Regards
Daniel (Puggy858)

Hi Diesel vdub,
Did that and I tried again, download stops halfway through and comes up with same message I have already quoted. Wifi Signal is 5/5, network is working, just not letting me download via iTunes.

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