All I tried to do was update my iphone 3G to IOS4.1 with iTunes. Couldn’t be simpler you would think. So 24 hours later and I finally have a solution to error 1604 which allows me to restore my iphone.
First things first credit where credit is due. I searched high and low on the web for solutions but the one which worked for me was at;
Basically the steps I carried out were as follows:
1. Do not reinstall iTunes. There is no need.
2. Navigate to C:\Documents and Settings\<your username>
3. At this point go to tools on the top menu bar and click show hidden files. Once done navigate to Application Data\Apple Computer\iTunes\iPhone Software Updates.
4. Cut and paste everything in this folder to a different location on your computer.
5. Start iTunes. It will recognise your phone and say that it needs to be restored. Download the software and install. Your iPhone should now be restored.
Just some notes. If you have previously synced your phone with iTunes then after restore you should get the option to restore all your data. If your didn’t then you will unfortunately lose the data.
Hopefully this tutorial will be of help. Good luck!!