I took this in Whitby before the iOS5 and error 3200 fiasco. 13 attempts to upgrade to the new iCloud etc – and all unlucky. However, I have managed to find these tips to making the update happen and solve the error message. The 14th attempt worked… Here’s the solution:
1. Reboot your iPhone after you get the error.
2. Make sure all your apps are already updated.
3. Try again, and don’t give up, as Apple’s servers might be over loaded.