Itunes store works fine but says no internet connection

I am trying to upgrade to 2.2.1 for iPhone when I try to do update says I have no connection. I can go to music store and download music.I ran diagnostics and every test passes except internet connection. I do use AVG Free virus software and windowsirewall and it says that they are permitted.

I need help itunes store works fine need to connect so I can update my iphone. I use AVG virus software Any help graetle appreciated.
Microsoft Windows Vista Home Premium Edition Service Pack 1 (Build 6001)
To Be Filled By O.E.M. ConRoeXFire-eSATA2.
iTunes 8.1.0.51
QuickTime 7.6
FairPlay 1.2.12
iPod Updater Library 8.1d19
CD Driver 2.1.0.0
CD Driver DLL 2.1.1.1
Apple Mobile Device 2.4.0.27
Apple Mobile Device Driver 1.40.0.0
Bonjour 1.0.6.2 (118.5)
iTunes Serial Number ##########
Current user is not an administrator.
The current local date and time is 2009-03-18 13:45:40.
iTunes is not running in safe mode.
Video Display Information
ATI Technologies Inc., Sapphire RADEON X1600 PRO
ATI Technologies Inc., Sapphire RADEON X1600 PRO Secondary
** External Plug-ins Information **
Plug-in Name: LyricsSeeker plugin for iTunes, v2.1
Plug-in Loaded: Yes
Plug-in Version: 0.8
Plug-in File Version: 2.0.0.1
Plug-in Path: C:\Program Files\iTunes\Plug-ins\LyricsSeeker-iTunes.dll
** Network Connectivity Tests **
Network Adapter Information
Adapter Name: {25F3A7E0-58DD-4D94-97DA-9FC95C1BD8A1}
Description: Realtek RTL8168/8111 Family PCI-E Gigabit Ethernet NIC (NDIS 6.0)
IP Address: #########
Subnet Mask: 255.255.255.0
Default Gateway: 192.168.1.###
DHCP Enabled: Yes
DHCP Server: 192.168.1.###
Lease Obtained: Wed Mar 18 02:52:05 2009
Lease Expires: Thu Mar 19 02:52:05 2009
DNS Servers: 192.168.1.###
192.168.1.###
Active Connection: (none)
Connected: No
Online: No
Using Modem: Yes
Using LAN: No
Using Proxy: No
SSL 3.0 Support: Enabled
TLS 1.0 Support: Enabled
Firewall Information
Windows Firewall is on.
iTunes is enabled in Windows Firewall.
Connection attempt to Apple web site was successful.
Connection attempt to iTunes Store was successful.
Secure connection attempt to iTunes Store was successful.
Secure connection attempt to iPhone activation server was successful.
Last successful store access was 2009-03-17 03:31:17.
** iPod/iPhone Connectivity Tests **
iPodService 8.1.0.51 is currently running.
iTunesHelper 8.1.0.51 is currently running.
Apple Mobile Device service 2.12.36.0 is currently running.
Universal Serial Bus Controllers:
Intel(R) 82801G (ICH7 Family) USB Universal Host Controller - 27C8. Device is working properly.
Intel(R) 82801G (ICH7 Family) USB Universal Host Controller - 27C9. Device is working properly.
Intel(R) 82801G (ICH7 Family) USB Universal Host Controller - 27CA. Device is working properly.
Intel(R) 82801G (ICH7 Family) USB Universal Host Controller - 27CB. Device is working properly.
Intel(R) 82801G (ICH7 Family) USB2 Enhanced Host Controller - 27CC. Device is working properly.
FireWire (IEEE 1394) Host Controllers:
Texas Instruments OHCI Compliant IEEE 1394 Host Controller. Device is working properly.
Connected Device Information:
UofMBob's iPhone, iPhone running firmware version 2.2
Serial Number: ##########
Most Recent Device Not Currently Connected:
iPod nano running firmware version 1.3.1
Serial Number: ##########
** iPhone/iPod Touch Sync Tests **
Sync tests completed successfully.
Message was edited by: UofMBob

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