Error trying to update iPhone to software version 1.0.2

I have just recently purchased an iPhone. I have no problem syncing it with iTunes. The only problem I have is every time I try to update the software version of my iPhone, it downloads the entire thing then an error message pops up as shown:
*"There was a problem downloading the iPhone software for the iPhone "name". An unknown error occured (-48).*
*Make sure your network settings are correct and your network connection is active, or try again later."*
I have received this error several times and no matter what I do, I can't get it to work. The phone is not hacked, I just purchased it 2 days ago. Its BRAND NEW. I even tried erasing all setting and info, and a restore. Still, nothing.
What am I doing wrong here? Is there something I need to do in the network settings of my iPhone? Or my cpu? I don't understand the error as I am connected to the internet.
Please, someone help me!
Thank you.

Thank you for your help. I did try to do a full restore, but had to pause the download. When I came back and resumed it, the download just kept going past the 92MB file. It went all the way up to 200MB of 92MB...I have no idea what is going on with that. So I just stopped it and deleted it.
But it takes almost an hour to download it from my connection and I didn't want to try it again. Maybe I will have to.
Any other suggestions?

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