It was nearly a week ago since Apple released iOS5 for the general masses to download and update. Sadly, things did not go as Apple planned, and their servers got hammered by the iOS5 IPSW download request. Due to this, many users got an error 3200 and/or 3002 while updating their iDevice to iOS5 using iTunes.
The only way to solve this issue is to download the required IPSW file for your iDevice, and manually restore that using iTunes. Users can download the required IPSW file from here.
To manually restore the IPSW file, users need to connect their iDevice to their PC/Mac, and fire up iTunes. Once their device is detected, they need to press the Command/Shift key and then click on the Restore option. After that a new window will open, and users need to select the IPSW file they downloaded above.
A step by step guide to manually update your iDevice to iOS5 can be found here.