If you are encountering any of this problems when trying to restore your FW with iTunes, check to see if this works for you, it worked for me!

1. "Insufficient memory" message, remember to hold down the power button for 10 seconds before releasing it!! doesn't matter that the screen shuts down, use a watch and time the 10 seconds.

2. "Error 50" then unpacking the 1.0.2 FW, this happens cause your Windows XP is in Spanish or in some other language that is not english, for this you will have to change your system variables "temp" and "tmp" to a specified folder directly inside the root directory of your hardrive, this worked for me. To get to this setting follow this: "Mi PC -> Propiedades -> Opciones Avanzadas -> Variables de entorno -> Variables de usuario ..."

Please fill free to ask any questions!