I mentioned that I am taking my iPhone 4 into Apple Store tomorrow to get a fix for my iPhone 4 won’t turn on issue.
So, I just wanted to take it in after a backup and update to iOS 4.3 in a non-jailbroken state. However, when iTunes started to update to iOS 4.3, after going through most of the steps at the end it threw the ‘iTunes 1013 error’.
Usually this happens when iTunes can’t verify your device with Apple. Then it clicked.
I had used TinyUmbrella easlier to save my SHSH blobs to Cydia and one of the things it does is to block access to Apple servers. This lets you restore to a lower iOS long after Apple has stopped signing those versions.

In TinyUmbrella, go to Advanced tab and make sure you uncheck “Set Hosts to Cydia on Exit” option.
As a double check, make sure you don’t have an entry in hosts file in your computer for gs.apple.com. If you do, comment it out and try the restore process again.
That did the trick for me and I was able to restore successfully.

