Issues with downgrade

[dtl]

I have already "bypassed the overlord" i went on to put the device into DFU mode with itunes running.the window comes up saying "iTunes must check the iPod software update server to identify this device."...continued by telling me to check the automatically check for updates in "options" Check - or Cancel are my only options. i click "check" this brought me to itunes recognizing the device in recovery mode and that i must restore it.
and proceeded onto the "normal restore of 3.0" i hold down the shift button and the following window pops up. "automatically checking for updates is disabled..." and then it checks for updates if i check.

what do i do? the newest update 3.1.2 is out. i cant use restore(while pressing the shift)

[i.Annie]

Have you tried using an older version of iTunes?

[dtl]

i downgraded from the newest to 8.2