Nothing can be more frustrating when you are trying to restore you nonfunctional iDevice via iTunes and you are slapped with the error below telling that iTunes is not able to get in touch with its base, whereas in-fact the internet connectivity seems fine and you are able to do other online activities as usual.
"The iPod software update server could not be contacted. Make sure your network settings are correct and your network connection is active, or try again later."
Unlike the iTunes Error Code - 3259 this error is not connected to iTunes white-listing in your Firewall or anti-virus application, but the solution is even simpler.
The error occurs when you have "Work Offline" mode selected in Internet Explorer and to fix the error all you need to do is to switch-off (uncheck) the more from Internet Explorer menu.