Wow.
So this whole time, I've been trying to update by doing shift + update since I already had my phone backed up and iOS 5.0 IPSW downloaded. I constantly kept getting the 3002 error for the last 2+ HOURS. I finally decided to put my IPSW in my iTunes C:\Users\AppData\Roaming\Apple Computer\iTunes\iPhone Software Updates and just press update and it's ACTUALLY working! This maybe the reason why everyone is getting an error since we're not n00bs to just press update (well I'm not).
This *Really works yo.