The eaiest solution is to download the update file directly from the links listed here:
These are links to the Apple servers.
Pick the file that matches your device and dowload it. Connect the device to iTunes, and Option-Click the Update button (Shift-Click for Windows). This will give you a dialog to navigate to the file you downloaded.
Hope this helps
ok, so i'm still experiencing this issue. however, i uninstalled iTuned and then re-installed. the update progress works fine, but right when the update finishes it says "processing file"...............moments later*, the same pop up i showed above pops up "there was a problem downloading the software for the iPad Shanti. the network connection timed out". what the ****?!?!?!
SERIOUSLY, THIS IS GETTING IRRITATING. AM I GONNA GET HELP ON THIS OR WHAT?!
p.s.- excuse me for yelling but this has been an ongoing issue for quite sometime now. i'd appreciate some help!