We have just come to know that a large number of people facing couple of crappy errors issue while upgrading their devices to iOS 5 with iTunes 10.5, one of the most seeing error is “3200 & 3002” which preventing the installation of the iOS 5 public release on iOS devices.

Fix 3200 iTunes Error
We have tried couple of things to get rid from this error and at the end we found out that the issue is rising because of the massive load on Apple servers and due to overload folks are facing this issue, if you are one of them who are facing this issue, just wait for couple of hours or minutes and then again try to update your device to Apple’s new iOS 5, and one more thing try to open the Apple’s server IP address in “hosts” file of your Windows or Mac.
Fix 3200 error on iOS 5
Speculation points to this just being related to Apple’s servers being overloaded, and some users are seeing success after multiple attempts.

Update: GDGT has noted how to bypass this error by installing iOS 5 manually. Simply hold down option + click “Check for update” in iTunes, and navigate to the IPSW file.