Tried to update my iPad OS from iTunes. Frozen and got an "unknown error msg". I tried to restore the iPad to factory settings..got the same

Question

I bought today a new iPad from Rideau Store. The setup guys didn't update to latest software version. I tried to do myself trough iTunes, which notify me that an upgrade is available. After a while the upgrading process froze with a msg "unknown error ..". I clicked on the More  info  button and I got a page saying "due to a scheduled upgrade of Apple's support system some feature are not available.
The bottom line is that now the iTunes does detect the iPad being in recovering mode and asks to restore it to fabrics defaults. I tried to do this and again I got aqn "unknown error"
Finally I run the iTunes diagnostics to check the connectivity between my iPad and my HP laptop (iTunes). For unknown reson the iTunes does not detect my iPad. See below the diagnostics log:
Itunes Diagnostics
MicrosoftWindows XP Professional Service Pack 3 (Build 2600)
Hewlett-PackardPavilion dv5000 (EP416UA#ABA)
iTunes10.2.2.12
QuickTime 7.6.9
FairPlay1.11.17
AppleApplication Support 1.5.1
iPod UpdaterLibrary 10.0d2
CD Driver2.2.0.1
CD Driver DLL2.1.1.1
Apple MobileDevice 3.4.0.25
Apple MobileDevice Driver 1.55.0.0
Bonjour 2.0.5.0(214.3)
Gracenote SDK1.8.2.457
GracenoteMusicID 1.8.2.89
GracenoteSubmit 1.8.2.123
Gracenote DSP1.8.2.34
iTunes SerialNumber 0012AD0812DA2D38
Current user isan administrator.
The currentlocal date and time is 2011-04-20 20:32:27.
iTunes is notrunning in safe mode.
WebKitaccelerated compositing is enabled.
HDCP is notsupported.
Core Media issupported.
Video DisplayInformation
ATI MOBILITYRADEON Xpress 200 Series  
**** ExternalPlug-ins Information ****
No externalplug-ins installed.
Genius ID:cb0eaa5cad8a753f64335065bc061263
**** DeviceConnectivity Tests ****
iPodService10.2.2.12 is currently running.
iTunesHelper10.2.2.12 is currently running.
Apple MobileDevice service 3.3.0.0 is currently running.
UniversalSerial Bus Controllers:
StandardEnhanced PCI to USB Host Controller. Device is working properly.
StandardOpenHCD USB Host Controller.  Device isworking properly.
StandardOpenHCD USB Host Controller.  Device isworking properly.
No FireWire(IEEE 1394) Host Controller found.
Most RecentDevices Not Currently Connected:
iPad runningfirmware version 4.3.1
Serial Number:        DLXFK2A8DKPH
**** DeviceSync Tests ****
No iPod, iPhone, or iPad found.

Answer 1

Try:                                               
- iOS: Not responding or does not turn on
- Also try DFU mode after try recovery mode
How to put iPod touch / iPhone into DFU mode « Karthik's scribblings
- If not successful and you can't fully turn the iOS device fully off, let the battery fully drain. After charging for an least an hour try the above again.
- Try another cable       
- Try on another computer                            
- If still not successful that usually indicates a hardware problem and an appointment at the Genius Bar of an Apple store is in order.
  Apple Retail Store - Genius Bar                              
Also, do you remember what the error message said?