I haven't seen any help about this online so far, but I resolved the issue, so I'm posting my findings.
I have:
- iPod Touch 16GB
- iTunes 9.0.1.8
- Windows XP SP3
- ESET Antivirus 3.0.672.0
Problem:
After paying the $5 to upgrade from iPhone OS 2.1.1 to 3.1.1, the software download in iTunes stopped after completing and eventually displayed an error message that the "network timed out". On the downloads page, it showed error code 3259.
Resolution:
My antivirus software (ESET) was stealing the file from iTunes after the download completed, scanning it, and not returning it in a timely manner, since the file was rather large. I temporarily disabled the antivirus software, restarted the download, and then everything worked fine. (Don't forget to reenable your antivirus when you're done!)
I hope this can help save you a headache!
