I ran a packet sniffer and noted that iTunes is trying to connect to albert.apple.com.
I suspect that either access has been blocked to prevent overload or an overload has already take place. Either way it is messing me around as I want to play with the new iPhone OS 3
features before work tomorrow!
Oh well, off to bed. Hope the error is fixed by tomorrow!
edit: (15 minutes later)
It started to install after many many clicks on the Update button! Woohoo!
