I am having problems updating my iPad 2 from version 4.3 to latest software version? Any suggestions?

Here is a manual method. Go to http://www.redmondpie.com/download-ios-4.3.5-for-iphone-4-3gs-ipad-2-1-and-pod-t ouch-direct-links/ and download the correct version of iOS 4.3.5 for your iOS device. Then attach your iOS device to you computer. Open iTunes and highlight your iOS device under Devices in the left column. Press and hold Option/ALT while clicking Check for Update. Browse to where you downloaded the 4.3.5 file and choose it. iTunes should take care of the rest, including verifying the iOS file with Apple.

iPad 2 WiFi

http://appldnld.apple.com/iPhone4/041-1960.20110721.UsAO4/iPad2,1_4.3.5_8L1_Rest ore.ipsw

iPad 2 G3

http://appldnld.apple.com/iPhone4/041-1961.20110721.zigyd/iPad2,2_4.3.5_8L1_Rest ore.ipsw

iPad 2 Verizon

http://appldnld.apple.com/iPhone4/041-1962.20110721.rWxrf/iPad2,3_4.3.5_8L1_Rest ore.ipsw

I assume that you are trying to download and save it on Safari on your computer, and not on your iPad. If you've got a different browser on your computer then have you tried downloading it on that instead ?

You are trying to download this on a computer, right? The instructions are for downloading and installing from the iTunes app on a computer. If you are using your computer, then the problem must be your Mac. I have no issues downloading any of the files. As you can see they come directly from Apple's server.

I would try creating a test user account on your Mac and see if the download problem exists in the test account.