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I am having update issues from “internal error” or iOS 5 Error 3200.
The iPhone "Courtney Boyd Myers iPhone" could not be restricted. As internal error occurred.
Many people get this error when updating to IOS 5. Error 3200 is due to the congested Apple servers. There are a number of people trying to update or backup just like you. What you need to do is try to do things manually to avoid clogging up the servers.
You could try manually updating your device by simply downloading the IPSW for your device. Here's a link:
Navigate through the choices and find an update specifically for your device. When download is finished, press SHIFT+UPDATE on iTunes and browse through your downloaded firmware. Wait for the update to complete and there you have it.
Hope this will help you.