what i did was
1.) download iPhone3,1_4.3.3_8J2_Restore.ipsw
2.) shift click restore on itunes to the above firmware
3.) while restoring halfway it gave me the itunes error 3194
4.) tried changing my host file to # 127.0.0.1 gs.apple.com but still didn't work.
5.) use ifaith to create a custom 4.0 ipsw file and restored the phone back to 4.0 again.
not sure where i go wrong, or should i restore using a custom 4.3.3 firmware then jailbreak from there using redsn0w?
also if i managed to upgrade to 4.3.3 will i be able to do a "restore from back" to get back my contacts emails sms and settings?