IPhone restore through itunes in windows xp sp2 not working

Question

Microsoft Windows XP Professional Service Pack 2 (Build 2600)
Hewlett-Packard HP Compaq dx6100 MT(PQ674PC)
iTunes 11.1.3.8
QuickTime 7.7.4
FairPlay 2.5.16
Apple Application Support 2.3.6
iPod Updater Library 11.1f5
CD Driver 2.2.3.0
CD Driver DLL 2.1.3.1
Apple Mobile Device 7.0.0.117
Apple Mobile Device Driver 1.64.0.0
Bonjour 3.0.0.10 (333.10)
Gracenote SDK 1.9.6.502
Gracenote MusicID 1.9.6.115
Gracenote Submit 1.9.6.143
Gracenote DSP 1.9.6.45
iTunes Serial Number 0012B5980E0E9DE8
Current user is an administrator.
The current local date and time is 2014-01-03 17:34:37.
iTunes is not running in safe mode.
WebKit accelerated compositing is enabled.
HDCP is not supported.
Core Media is not supported. (16005)
Video Display Information
Intel(R) 82915G/GV/910GL Express Chipset Family
Intel(R) 82915G/GV/910GL Express Chipset Family
**** External Plug-ins Information ****
No external plug-ins installed.
iPodService 11.1.3.8 is currently running.
iTunesHelper 11.1.3.8 is currently running.
Apple Mobile Device service 3.3.0.0 is currently running.
**** Network Connectivity Tests ****
Network Adapter Information
Adapter Name:        {5B993F11-8BF9-4E8F-B4F2-330410EF70B7}
Description:            Broadcom NetXtreme Gigabit Ethernet - Packet Scheduler Miniport
IP Address:             192.168.1.26
Subnet Mask:          255.255.255.0
Default Gateway:    192.168.1.1
DHCP Enabled:      No
DHCP Server:         255.255.255.255
Lease Obtained:     Thu Jan 01 05:30:00 1970
Lease Expires:       Thu Jan 01 05:30:00 1970
DNS Servers:         192.168.1.1
                                218.248.240.179
                                192.168.1.5
Active Connection: LAN Connection
Connected:             Yes
Online:                    Yes
Using Modem:        No
Using LAN:             Yes
Using Proxy:           No
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 unsuccessful.
The network connection timed out.
Connection attempt to Gracenote server was successful.
Last successful iTunes Store access was 2014-01-03 17:32:04.

Answer 1

Connection attempt to firmware update server was unsuccessful.
Network timed out cause something is blocking you. My guess the same something disabled your Windows Firewall, but it also could be you did it yourself.
Disable all your antiviruses, check your host file, uninstall antiviruses if disable does not help.