Cannot connect to ipod software update server

I have been battling for weeks to get my daughters iPod updated to iOS 5. I keep getting an error message when I try to upgrade "iTunes could not contact the iPod software update server because you are not connected to the Internet." The internet and iTunes are working and I updated my iPhone from the same PC with no issues.
I am running Win 7 x64
I have worked through all the solutions have found on the forums including:
1) Ensure that the local area connection is set toautomatically discover settings
2) flush the DNS cache
3) Change the "Windows live family safety settings for her account to unrestricted"
4) Removee "Windows live family safety" from the PC
5) Change her account to an admin account
6) Temporarily disabled AVG
7) Remove the content of the hosts file
8) Running iTunes as an administrator explicitly
9) Temporarily disabled the windows firewall.
There have been many reboots in this sequence.
iTunes diagnostics gives the following (while running iTunes as administratir, with AVG disabled and the windows firewall disabled, and her account as administrator) - The thing that looks wrong to me is that there appears to be no active connection identified, trouble is the network is working so what is going on? Any help gratefully recieved.
Microsoft Windows 7 x64 Home Premium Edition Service Pack 1 (Build 7601)
Dell Inc. Inspiron 545
iTunes 10.5.2.11
QuickTime 7.7.1
FairPlay 1.13.37
Apple Application Support 2.1.5
iPod Updater Library 10.0d2
CD Driver 2.2.0.1
CD Driver DLL 2.1.1.1
Apple Mobile Device 4.0.0.97
Apple Mobile Device Driver 1.57.0.0
Bonjour 3.0.0.10 (333.10)
Gracenote SDK 1.9.5.502
Gracenote MusicID 1.9.5.115
Gracenote Submit 1.9.5.143
Gracenote DSP 1.9.5.45
iTunes Serial Number 0044A8C403578DE0
Current user is an administrator.
The current local date and time is 2011-12-16 20:41:03.
iTunes is not running in safe mode.
WebKit accelerated compositing is enabled.
HDCP is supported.
Core Media is supported.
Video Display Information
ATI Technologies Inc., ATI Radeon HD 4300/4500 Series      
**** External Plug-ins Information ****
No external plug-ins installed.
iPodService 10.5.2.11 (x64) is currently running.
iTunesHelper 10.5.2.11 is currently running.
Apple Mobile Device service 3.3.0.0 is currently running.
**** Network Connectivity Tests ****
Network Adapter Information
Adapter Name:          {CA751758-A3D4-4D96-B62D-BA2AB81D1EC2}
Description:          Realtek PCIe FE Family Controller
IP Address:          192.168.1.100
Subnet Mask:          255.255.255.0
Default Gateway:          192.168.1.1
DHCP Enabled:          Yes
DHCP Server:          192.168.1.1
Lease Obtained:          Fri Dec 16 19:42:19 2011
Lease Expires:          Sat Dec 17 19:42:19 2011
DNS Servers:          192.168.1.1
                    194.168.4.100
                    194.168.8.100
Active Connection:          (none)
Connected:          No
Online:                    No
Using Modem:          Yes
Using LAN:          No
Using Proxy:          No
SSL 3.0 Support:          Enabled
TLS 1.0 Support:          Enabled
Firewall Information
Windows Firewall is off.
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 2011-12-16 20:40:55.

Same problem here.
Two days and I cannot update the apps from iTunes in my desktop computer.
Have done almost the samethings as ginaroseapple, still won't connect to iTunes.
This is the header of the warning window:
Se produjeron problemas al descargar algunos elementos comprados.
Si desea más información sobre los elementos que no se han podido descargar, haga clic más abajo.
Ha ocurrido un problema al descargar “Dragon Dictation”. Se ha producido un error desconocido (-50).
Asegúrese de que la conexión a la red está activa, e inténtelo de nuevo.
and so on....
Please help.
Microsoft Windows 7 x64 Ultimate Edition Service Pack 1 (Build 7601)
Dell Inc. Precision WorkStation 690
iTunes 10.5.2.11
QuickTime 7.7.1
FairPlay 1.13.37
Soporte para aplicaciones de Apple 2.1.6
Biblioteca de actualización del iPod 10.0d2
Controlador CD 2.2.0.1
DLL controlador CD 2.1.1.1
Dispositivo móvil de Apple 4.0.0.97
Apple Mobile Device Driver 1.57.0.0
Bonjour 3.0.0.10 (333.10)
Gracenote SDK 1.9.5.502
Gracenote MusicID 1.9.5.115
Gracenote Submit 1.9.5.143
Gracenote DSP 1.9.5.45
Número de serie de iTunes 00C8A974237EDB40
El usuario actual es un administrador.
La fecha y la hora local es: 2011-12-16 15:54:41.
iTunes no se ejecuta en modo seguro.
La composición acelerada de WebKit está activada.
Compatible con HDCP.
Compatible con Core Media.
Información de pantalla de vídeo
ATI Technologies Inc., ATI FireGL V3400 (Microsoft Corporation - WDDM)
ATI Technologies Inc., ATI FireGL V3400 Secondary (Microsoft Corporation - WDDM)
NVIDIA, NVIDIA Quadro 2000
**** Información de complementos externos ****
No hay complementos externos instalados.
ID de Genius: 42b7f2ab0b0b7919fcf49d79bc922303
**** Pruebas de conectividad de red ****
Información del adaptador de red
Nombre del adaptador:          {3112817E-1102-48B8-8C3B-EA0182158A70}
Descripción:          Broadcom NetXtreme 57xx Gigabit Controller
Dirección IP:          192.168.1.71
Submáscara de red:          255.255.255.0
Puerta de vínculo predeterminada:          192.168.1.254
DHCP activado:          Sí
Servidor DHCP:          192.168.1.254
Concesión obtenida:          Fri Dec 16 15:27:30 2011
Caducidad de la concesión:          Sat Dec 17 15:27:30 2011
Servidores DNS:          192.168.1.254
Conexión activa:          LAN Connection
Conectado:          Sí
Conectado:                    Sí
Módem en uso:          No
LAN en uso:          Sí
Proxy en uso:          No
Compatibilidad con SSL 3.0:          Activado
Compatibilidad con TLS 1.0:          Activado
Información del firewall
El firewall de Windows está desactivado.
Se ha podido establecer conexión con el sitio web de Apple.
Se ha podido establecer conexión con iTunes Store para explorar.
Se ha podido establecer conexión con iTunes Store para realizar compras.
Se ha podido establecer conexión con el servidor de activación del iPhone.
Se ha podido establecer conexión con el servidor de actualización del firmware.
Se ha podido establecer conexión con el servidor de Gracenote.
Último acceso a iTunes Store: 2011-12-16 15:37:04.
**** Pruebas de unidades de CD/DVD ****
LowerFilters: clbstor (5.0.0.59), PxHlpa64 (2.0.0.0),
UpperFilters: GEARAspiWDM (2.2.0.1),
U: HP DVD Writer 1040d, Rev EH23
La unidad está vacía.
La corrección de errores está activada para la importación de discos CD de audio.
**** Pruebas de conectividad del dispositivo ****
iPodService 10.5.2.11 (x64) se está ejecutando.
iTunesHelper 10.5.2.11 se está ejecutando.
Apple Mobile Device service 3.3.0.0 se está ejecutando.
Controladores de bus serie universal:
Renesas Electronics USB 3.0 Host Controller.  El dispositivo funciona correctamente.
Renesas Electronics USB 3.0 Host Controller.  El dispositivo funciona correctamente.
Intel(R) 631xESB/6321ESB/3100 Chipset USB Universal Host Controller - 2688.  El dispositivo funciona correctamente.
Intel(R) 631xESB/6321ESB/3100 Chipset USB Universal Host Controller - 2689.  El dispositivo funciona correctamente.
Intel(R) 631xESB/6321ESB/3100 Chipset USB Universal Host Controller - 268A.  El dispositivo funciona correctamente.
Intel(R) 631xESB/6321ESB/3100 Chipset USB Universal Host Controller - 268B.  El dispositivo funciona correctamente.
Intel(R) 631xESB/6321ESB/3100 Chipset USB2 Enhanced Host Controller - 268C.  El dispositivo funciona correctamente.
Controladores de host FireWire (IEEE 1394):
Texas Instruments 1394 OHCI Compliant Host Controller.  El dispositivo funciona correctamente.
Información del dispositivo conectado:
iPad de Marco de la Concha, iPad 2 (GSM) usando la versión 5.0.1 del firmware
Número de serie:          DLXFD6DVDFJ3
Dispositivos más recientes no conectados en este momento:
iPod touch (segunda generación) usando la versión 4.2.1 del firmware
Número de serie:          9C909NVH208
**** Pruebas de sincronización del dispositivo ****
Pruebas de sincronización completadas correctamente.
Se produjeron problemas al descargar algunos elementos comprados.
Si desea más información sobre los elementos que no se han podido descargar, haga clic más abajo.
Ha ocurrido un problema al descargar “Dragon Dictation”. Se ha producido un error desconocido (-50).
Asegúrese de que la conexión a la red está activa, e inténtelo de nuevo.
Ha ocurrido un problema al descargar “GameFly”. Se ha producido un error desconocido (-50).
Asegúrese de que la conexión a la red está activa, e inténtelo de nuevo.
Ha ocurrido un problema al descargar “iThoughtsHD (mindmapping)”. Se ha producido un error desconocido (-50).
Asegúrese de que la conexión a la red está activa, e inténtelo de nuevo.
Ha ocurrido un problema al descargar “SketchBook Pro for iPad”. Se ha producido un error desconocido (-50).
Asegúrese de que la conexión a la red está activa, e inténtelo de nuevo.
Ha ocurrido un problema al descargar “Twitter”. Se ha producido un error desconocido (-50).
Asegúrese de que la conexión a la red está activa, e inténtelo de nuevo.
Ha ocurrido un problema al descargar “Facebook”. Se ha producido un error desconocido (-50).
Asegúrese de que la conexión a la red está activa, e inténtelo de nuevo.
Ha ocurrido un problema al descargar “FitnessBuilder”. Se ha producido un error desconocido (-50).
Asegúrese de que la conexión a la red está activa, e inténtelo de nuevo.
Ha ocurrido un problema al descargar “iBooks”. Se ha producido un error desconocido (-50).
Asegúrese de que la conexión a la red está activa, e inténtelo de nuevo.
Ha ocurrido un problema al descargar “Angry Birds Seasons HD”. Se ha producido un error desconocido (-50).
Asegúrese de que la conexión a la red está activa, e inténtelo de nuevo.
Ha ocurrido un problema al descargar “Tilt Shift Focus HD”. Se ha producido un error desconocido (-50).
Asegúrese de que la conexión a la red está activa, e inténtelo de nuevo.
Ha ocurrido un problema al descargar “iStellar”. Se ha producido un error desconocido (-50).
Asegúrese de que la conexión a la red está activa, e inténtelo de nuevo.
Ha ocurrido un problema al descargar “AppBox Pro: A Swiss Army Knife for Your Digital Life”. Se ha producido un error desconocido (-50).
Asegúrese de que la conexión a la red está activa, e inténtelo de nuevo.
Ha ocurrido un problema al descargar “Plaxo Address Book Backup”. Se ha producido un error desconocido (-50).
Asegúrese de que la conexión a la red está activa, e inténtelo de nuevo.
Ha ocurrido un problema al descargar “SketchBook Mobile”. Se ha producido un error desconocido (-50).
Asegúrese de que la conexión a la red está activa, e inténtelo de nuevo.
Ha ocurrido un problema al descargar “LinkedIn”. Se ha producido un error desconocido (-50).
Asegúrese de que la conexión a la red está activa, e inténtelo de nuevo.
Ha ocurrido un problema al descargar “iStudious - Note Taking + Flashcards w/ Handwriting and Rich Text”. Se ha producido un error desconocido (-50).
Asegúrese de que la conexión a la red está activa, e inténtelo de nuevo.
Ha ocurrido un problema al descargar “Run 5k”. Se ha producido un error desconocido (-50).
Asegúrese de que la conexión a la red está activa, e inténtelo de nuevo.
Ha ocurrido un problema al descargar “Remove Duplicate Contacts and Events : Contact Groups and Calendar Management & Group Email”. Se ha producido un error desconocido (-50).
Asegúrese de que la conexión a la red está activa, e inténtelo de nuevo.
Ha ocurrido un problema al descargar “Yahoo!”. Se ha producido un error desconocido (-50).
Asegúrese de que la conexión a la red está activa, e inténtelo de nuevo.
Ha ocurrido un problema al descargar “Skype”. Se ha producido un error desconocido (-50).
Asegúrese de que la conexión a la red está activa, e inténtelo de nuevo.
Ha ocurrido un problema al descargar “Ambiance”. Se ha producido un error desconocido (-50).
Asegúrese de que la conexión a la red está activa, e inténtelo de nuevo.
Ha ocurrido un problema al descargar “Instalyrics”. Se ha producido un error desconocido (-50).
Asegúrese de que la conexión a la red está activa, e inténtelo de nuevo.
Ha ocurrido un problema al descargar “PDF Reader - iPhone Edition”. Se ha producido un error desconocido (-50).
Asegúrese de que la conexión a la red está activa, e inténtelo de nuevo.
Ha ocurrido un problema al descargar “FileMaker Go for iPad”. Se ha producido un error desconocido (-50).
Asegúrese de que la conexión a la red está activa, e inténtelo de nuevo.
Ha ocurrido un problema al descargar “HowStuffWorks for iPad”. Se ha producido un error desconocido (-50).
Asegúrese de que la conexión a la red está activa, e inténtelo de nuevo.
Ha ocurrido un problema al descargar “QuickVoice® Recorder”. Se ha producido un error desconocido (-50).
Asegúrese de que la conexión a la red está activa, e inténtelo de nuevo.
Ha ocurrido un problema al descargar “Cinemex”. Se ha producido un error desconocido (-50).
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Ha ocurrido un problema al descargar “Notably”. Se ha producido un error desconocido (-50).
Asegúrese de que la conexión a la red está activa, e inténtelo de nuevo.
Ha ocurrido un problema al descargar “Unlimited Free Books – Wattpad eBook Reader”. Se ha producido un error desconocido (-50).
Asegúrese de que la conexión a la red está activa, e inténtelo de nuevo.

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    The iPod 'iPod' cannot be restored at this time because the ipod software update server could not be contacted or is temporarily unavailable.
    I've been looking up trying to figure it out myself and have read making sure a setting in Lan Settings in Internet Properties has ; Automatically detect settings checked. I still get the same ipod message.
    I've tried holding the power and home key to turn it off, then powering it back on. But that doesn't work.
    I installed itunes today, so its up to date - I checked.
    I don't know what else to do.
    Can someone help me out, please? :}
    The operating system was ios 5 something? It wanted to update to 6 i believe.

    I've tried the top part but now that i've looked to the bottom:
    Additional Information
    The “hosts” file may also be blocking gs.apple.com.
    Select the hosts file (normally you can find your hosts file at C:\WINDOWS\SYSTEM32\DRIVERS\ETC).
    I put this in the url bar?
    When it gives me the list of names, im not sure what to do from there. The steps aren't that clear for me.

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