So I've tried all suggestions (except a new USB cable- but i think it's highly unlikely).
I redownloaded the 5.1.1 IPSW to ensure there were no issues there.
Still getting error 10 everytime (I'm in PWN DFU, have created a custom IPSW using redsnow or snowbreeeze)...
My details:
iOS 4.3.5
Baseband 05.13.04
IPSW version "iPhone2,1_5.1.1_9B206_Restore.ipsw"
iTunes version 10.2.2.12
Redsnow version "win_0.9.14b2"
What could possibly be going wrong?
Thanks for the help so far!