If you have iPhone4 with jailbreaked iOS 4.3.5 and getting error 3194 while upgrading to iOS 5 via iTunes, then just stop worrying.

Grab the solution given below and get rid of 3194 Error. I followed following steps and got running iOS 5 on my iPhone 4.

1. Install latest version of iTunes which is 10.5 so get updated it on your PC.
2. Disable security software (Antivirus etc…) if any on your PC and disable firewalls (recommended but not mandatory).
3. Open TinyUmbrella, move to the Advanced tab and un check the box “Set Hosts to Cydia on Exit”, It will set your host file to point back to Apple but after exiting TinyUmbrella, dont forget to restart your PC.
4. Connect your iPhone to your PC and put it into DFU mode. Follow this link to put your iPhone into DFU Mode.
5. Now open iTunes, press the restore button. your iPhone will be detected in recovery mode and iOS 5 installation will be start till to successful completion.

Note: This is a guest post by my friend, Rashid. He wanted to share his experience with my blog readers about this upgrade. As it took a lot of time to him to figure it out the pain free way to update to iOS 5, so he was anxious to share. These steps are shared in good faith. And I wish you guys and your iPhones all the best. 🙂