Help updating IPhone software

Hi - Im having trouble updating my iPhone software via iTunes. I clicked on the "update" tab but get an error msg: iTunes could not contact the iPhones software update server because you are not connected to the internet.
My internet connection works fine; and I can download songs from the iTunes Store without any issues.
Grateful for any help or suggestions.
Thanks very much.

I've ensured that iTunes is allowed to pass through the Windows firewall. I've also tried downloading the software with the fireall deactived completely. As said- I dont have any issues downloading mp3s via iTunes - just the iphone software.
Any other ideas?
Thanks

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