Iphone 4.3.2 upgrade to 5.0.1 error

trying to upgrade software on iphone 4 - version 4.3.2 to 5.0.1 through Itunes. - error "cannot update iphone because firmware file is not compatible"
Software version on iphone will not allow upgrade directly on iphone - Phone is 1.5 years old , purchased from Apple store in US - itunes version on PC (windows 7) is 10.5.1.42
Any suggestions?

On your system go to the folder below:
On Windows Vista/Windows 7:
Users\<User>\AppData\Roaming\Apple Computer\iTunes\iPhone Software Updates
On Mac:
~/Library/iTunes/iPhone Software Updates
Then find the IPSW file and delete them. Once deleted try and update your phone again. You may have a corrupt update file and you will need to download a new one.

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