I was upgrading my Daughters iPOD to v3.1.3 and getting a timeout error 3259 after several minutes. I looked on the web for an answer and EVERYTHING said... "update your iTUNES to the latest version and turn off your Firewall".

Ok. So I did that already. Get on with it.. it STILL DOESN'T WORK !!!  So I just thought, let's apply some process here. I analyzed the issue I was facing and it didn't take long to determine that the timeout error came after the same amount of time and the only way to get the update to start was to ensure that the iPOD passcode had been entered.

So, I told my daughter to DISABLE THE PASSCODE on the iPOD and guess what? It now works.. Genius I know, but the reality is that it's a simple process of problem management.