Problem Restoring iPhone from iTunes

I tried to reset my iPhone 4 after successfully upgrade to iOS 5.1 but the screen prompt me to connect to iTunes each time I restart and reset my iphone.
Just to inform that i'm on stable wifi broadband internet connection and can access other website or download other heavy files such as Quicktime trailers, etc.
I'm curious to know why the error 'The iPhone software update server could not be contacted. The network connection could not be established' when my internet connection here works fluid and fast and able to access other websites, gmail, youtube, etc.
I tried reset my phone many times but the screen 'connect USB to iTunes'. Truly appreciate your kind assistance and expert help. Thank you in advance.

I found a solution to this. Apparently i'm not the only one who have this issue but everyone else, due to heavy connection traffic on the iOS upgrade.
Just change your DNS from your network setting in your Mac:
Below is the way to do it on your Mac or iPhone/iPad
This has solved loads of people who have this issue and have used an alternate DNS setting.  Below are instructions for both iPhone OTA and on you Mac
If you are getting the error message "Unable to check for update" when you try an OTA (over the air update)
Change DNS Servers
Settings -> Wi-Fi
Click the blue arrow on your connected network
Delete everything in DNS and replace it with 208.67.222.222, 208.67.220.220
Try again
If this works, you will probably want to remove the WiFi network using "Forget This Network" and then reconnect to it to get your original DNS servers back. Alternatively, make a note of the original DNS servers before deleting them and replace it after you are done.
If you are getting the error message "Unable to check for update" when you try through iTunes
On your Mac
Choose Apple menu > System Preferences, and then click Network.
Select the network connection service you want to use (such as Wi-Fi or Ethernet, unless you named it something else) from the list, and then click Advanced.
Click DNS, and then click Add at the bottom of the DNS Servers list. Enter the IPv4 address for the DNS server.
You can use OpenDNS
208.67.222.222
208.67.220.220
or
You can Google Public DNS if you want
8.8.8.8
8.8.4.4
Source: https://discussions.apple.com/thread/3797597?tstart=0

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