Here is how I fixed the iTunes restore/update 3194 error on my iPhone 4 Jailbroken with iOS 6.1.2, updating to iOS 7.0
What didn’t work:
-removing all gs.apple.com entries from the Hosts file
-reinstalling iTunes 11.1
-removing all extra USB devices.
What DID work:
-going to a FRESH/NEW/DIFFERENT COMPUTER
-installing iTunes 11.1
-Plug in phone, Yes to backup, Yes to update
BAM!
