Hi,
Can someone help me with this please?
Here is the Updater Log iPhone 3GS Restore Error 9 updater log - Pastebin.com.

Thanks in advance,
-Hansa

Error 9 happens when the USB connection is interrupted or the phone unexpectedly drops connection during a restore. This is usually caused by cheap replacement cables or a dying USB port, or bad drivers for the motherboard's USB chipset.

Thank you for your reply.
I have the original USB cable and I used my laptop and 2 other new desktop PC's. almost all of them gave this same error.
So the next thing would be the "Dying USB port" in my phone.
Do you think I would be able to fix this issue by replacing this part ?
Repair Parts Replacement USB/Data Port Socket for iPhone 3GS - Free Shipping - DealExtreme

It would either be that actual piece or a failure on the logic board, is my guess. Thankfully this piece is a cheap replacement. If this doesn't work, you may need to replace the entire logic board...

okay then, will try with the cheaper solution first
Will update the post with my results.
Thanks again for your valuable input.