Problem updating iphone to iOS 5 latest OS.

i have an iMAC and I have tried to update my iphone 3g to the latest OS. Each time I get to around 20 - 25 minutes ( last time Igot to 5 minutes) an the connections drops. I get a message saying there was a problem transfering the data with the phone. Is this my connection with ATT or is it a problem else where?

I tried all options that Jenniferrules provided:-
Try this: http://support.apple.com/kb/TS3694)
It can't help.  I've also done removing and re-installing iTunes ... it is still not working.

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