I am quite sure that this is an easy fix. First, have to ask a few questions.
Do you have TinyUmbrella installed? If you do (and I think you do) then you need to open it, click on the advanced tab, UNCHECK the option that points to Cydia's servers and then Apply. after that point, you can try to kick the iPhone out of recovery or close TU and then do a restore again.
IF that doesn't work, you need to open your Hosts file (no file extension) and edit in notepad. Put a # in front of any line that mentions Apple. (usually gs.apple.com or something like that. Save, close and then try a restore again.
If you don't and have never had TU installed... Then I would need to know what the error is that you are getting.
Here is the reason. If you trying to update to anything prior to 4.3.3, Apple has stopped "signing" these firmwares. There is a way around it, but unfortunately, I am not very familiar with the method. You should probably contact Europa about it- IF that is the case.