We all know that millions of people across the world are upgrading to iOS 5.0. Due to this fact, Apple servers are swamped and failing to accept request for the upgradation. As a result, many people are experiencing internal error (3200) on iTunes 10.5. If you facing the similar error, it is advised to keep trying after intervals. There are chances that your request will be completed in a while.
That internal error (3200) is due to half of the servers which are not responding right now. However, other half are working properly without any issues. You can also download iOS 5 firmware manually from different sources on internet and then press option+restore (Mac) and shift+restore (PC) and browse to the firmware for the upgrading process to begin.
If you are facing any problem other than this, let’s know in the comment section. We will try to help you.