IPhone 3GS Update to 6.1.3 Crashes iTunes

About a month ago my mum lost her iPhone at work and later that day rung up O2 (her phone service provider) and got her sim cancelled or something along those lines. The next day she went to EE and got a contract and a new phone with them. When my mum returned to work she found her iPhone though and then gave it to me. I havent really touched it for the past month but now today i decided to start using it.
To start with, i tried connecting to the app store and recieved this error 'Cannot conect to the store. A secure connection could not be established. Please check your Date & Time settings'. So i checked the date and time settings both on the device and on my laptop (what i have iTunes on) and they were all fine but still this message persisted. I then thought that putting in my old 'non cancelled' sim card from GiffGaff might fix the problem; but no.
Next i turned to updating the iPhone. So i launch iTunes which i update to the newest version first and then attempt an update on the iPhone to 6.1.3. The update begins trying to backup the iPhone, which gets stuck right at the end of the bar for a few minutes before crashing iTunes. After a few more attempts of this, i try bypassing the backup stage by ending the 'AppleMobileBackup.exe' process through Windows Task Manager which worked and led me onto the iPhone restore stage. On this stage my iTunes loading bar displays 'Verifying iPhone Restore With Apple' and then after only a few seconds iTunes crashes once again.
Any help on fixing this error would be well appreciated,
Will.

Hello there, Will209.
The following Knowledge Base article should prove helpful in getting your iPhone restored:
If you can't update or restore your iOS device
http://support.apple.com/kb/ht1808
Thanks for reaching out to Apple Support Communities.
Cheers,
Pedro.

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