Update: Looks like the workaround doesnt offer a fix for everyone. This will speed up your download of the IPSW to your computer. But you may still run into authentication issues while Apples servers are being hammered. Looks like our original advice to be patient is still valid.Good news everyone. If youre experiencing the horror of Error 3200 instead of dancing in the technological flowers of iOS 5, theres a workaround discovered by GDGT users.Its as simple as downloading the iOS 5 IPSW iPhoneSoftware for your device directly from Apple instead of downloading it from within iTunes.
It's my life, you're just along for the ride! 