Hi!
Having the same issue (error 3) with my Ipad3+3G after update, tried restoring it on 3 computers (macbook unibody, macbook pro & PC windows 8), also went to apple service center and they could'nt install or help me either. Even tried the freezer trick with no luck, sadly.
Im out of warranty & the apple support says that the only thing that they can do for me is to take the ipad in for repair, and the price will probebly land at around 400USD (I'm from Sweden)
I find it sad that Apple thinks its fine to take that kind of amount of money when the problems came after the update. I take good care of my electronics and I have been a loyal costumer of Apple since i became a student in 2006 (macbook, macbook unibody, macbook pro, Iphone 4, Ipad 3, Iphone 5s).
Well enough with the sadness here are parts from the installationlog i got from my PC. I hope it helps those who are trying to understand the error 3 problem.
"
[19:01:20.0462] bbupdater: Waiting...bbupdater: OK
[19:01:20.0462] bbupdater: END: Sending 5 Images
[19:01:20.0462] bbupdater: Finalize...bbupdater: OK
[19:01:20.0462] bbupdater: Disconnecting...bbupdater: OK
[19:01:20.0462] bbupdater: BEGIN: Preparing Initial stage
[19:01:20.0462] bbupdater: Requested boot mode: kBBUBootModeNone
[19:01:20.0462] bbupdater: Adding 60.000000 seconds in timeout for EFS erase
[19:01:20.0462]
[19:01:20.0462] bbupdater: Creating transport, attempts remaining 1...bbupdater:FAILED(kBBUReturnIOError)
[19:01:20.0462] bbupdater: Creating transport, attempts remaining 0...bbupdater:FAILED(kBBUReturnIOError)
[19:01:20.0462] bbupdater: Modem not responding
[19:01:20.0462] bbupdater: Modem must boot - attempts left 1
[19:01:20.0462] bbupdater: Adding 60.000000 seconds in timeout for EFS erase
[19:01:20.0462]
[19:01:20.0462] bbupdater: Creating transport, attempts remaining 1...bbupdater:FAILED(kBBUReturnIOError)
[19:01:20.0462] bbupdater: Creating transport, attempts remaining 0...bbupdater:FAILED(kBBUReturnIOError)
[19:01:20.0462] bbupdater: Modem not responding
[19:01:20.0462] bbupdater: Modem must boot - attempts left 0
[19:01:20.0462] bbupdater: END(kBBUReturnTimedOut): Preparing Initial stage
[19:01:20.0462] bbupdater: END(kBBUReturnTimedOut): Perform stage at second
[19:01:20.0462] send_bbupdate_status: sending baseband update status to host
[19:01:20.0462] update_baseband: bbupdater error: The operation couldn\U2019t be completed. (BBUpdater error 3 - Failed creating a communication transport to baseband.)
[19:01:20.0462] 0: RamrodErrorDomain/3ec: update_baseband: failed to perform next stage
[19:01:20.0462] 1: BBUpdater/3: Failed creating a communication transport to baseband.
[19:01:20.0462] unable to convert ramrod error 1004
[19:01:20.0462] restore failed with CFError:
[19:01:20.0462] 0: AMRestoreErrorDomain/ffffffff: failed to update device firmware
[19:01:20.0462] 1: AMRestoreErrorDomain/ffffffff: ramrod firmware update failed
[19:01:20.0462] 2: RamrodErrorDomain/3ec: update_baseband: failed to perform next stage
[19:01:20.0462] 3: BBUpdater/3: Failed creating a communication transport to baseband.
[19:01:20.0462] waiting for host to acknowledge final status received...
[19:01:20.0462] host received final status
[19:01:20.0462] attempting to dump restore log
"
&
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[19:30:58.0203 entries =>
[19:30:58.0203] 4 : <CFString 06751160 [745E8078]>{contents = "attemptedToFuse"} = <CFBoolean 745E8A80 [745E8078]>{value = false}
[19:30:58.0203] 10 : <CFString 03156960 [745E8078]>{contents = "fused"} = <CFBoolean 745E8A78 [745E8078]>{value = true}
[19:30:58.0203] 12 : <CFString 03156A80 [745E8078]>{contents = "done"} = <CFBoolean 745E8A78 [745E8078]>{value = true}
[19:30:58.0203] }
[19:30:58.0203]
[19:30:58.0219] device returned CFError with code -1
[19:30:58.0219] dumping CFError returned by restored:
[19:30:58.0219] CFError domain:AMRestoreErrorDomain code:-1 description:failed to update device firmware
[19:30:58.0219] CFError domain:AMRestoreErrorDomain code:-1 description:ramrod firmware update failed
[19:30:58.0219] CFError domain:RamrodErrorDomain code:1004 description:update_baseband: failed to perform next stage
[19:30:58.0219] CFError domain:BBUpdater code:3 description:Failed creating a communication transport to baseband.
[19:30:58.0219] Sending acknowledgement that final status was received
[19:30:58.0469] Restore completed, status:3
[19:30:58.0469] Failure Description:
[19:30:58.0469] Depth:0 Error:AMRestorePerformRestoreModeRestoreWithError failed with error: -1
[19:30:58.0469] Depth:1 Error:The operation couldn\U2019t be completed. (AMRestoreErrorDomain error -1 - Failed to handle message type StatusMsg)
[19:30:58.0469] Depth:2 Error:The operation couldn\U2019t be completed. (AMRestoreErrorDomain error -1 - failed to update device firmware)
[19:30:58.0469] Depth:3 Error:The operation couldn\U2019t be completed. (AMRestoreErrorDomain error -1 - ramrod firmware update failed)
[19:30:58.0469] Depth:4 Error:The operation couldn\U2019t be completed. (RamrodErrorDomain error 1004 - update_baseband: failed to perform next stage)
[19:30:58.0469] Depth:5 Error:The operation couldn\U2019t be completed. (BBUpdater error 3 - Failed creating a communication transport to baseband.)
"