I have an iPhone 4 on Verizon. I just got it about 3 weeks ago and I've been trying to purchase + install the latest software (4.2.10). I have a PC. So I'll hit update and it will start the 8-10 minute long process of purchase it. Then when it goes to the installation process, it stops and a window comes up saying "error- network connection timed out". This makes no sense at all because my computer is connected to the internet just fine and I can access the iTunes store just fine. I installed the latest version of iTunes to see if that would fix the problem but it did not. My computer is in perfect working condition, as is my iPhone. Nothing seems to be wrong so why won't the dang thing purchase? This is really frustrating!!!

It could mean a few things... either your internet connection is not that good.

Are you on wifi? if so change to lan (Plugged in connection)

Something in your Iphone could be bad. Try going back to Verizon and asking. If not ask Apple.