I just did it as you said, I even saw it pop up a message saying its in DFU mode, and when I entered iTunes it said my iPad is in DFU mode and needs to be restored. But then, same thing happened again...

Error 3194. Any other suggestions?
And bytheway this is my host file:
# Copyright (c) 1993-1999 Microsoft Corp.
#
# This is a sample HOSTS file used by Microsoft TCP/IP for Windows.
#
# This file contains the mappings of IP addresses to host names. Each
# entry should be kept on an individual line. The IP address should
# be placed in the first column followed by the corresponding host name.
# The IP address and the host name should be separated by at least one
# space.
#
# Additionally, comments (such as these) may be inserted on individual
# lines or following the machine name denoted by a '#' symbol.
#
# For example:
#
# 102.54.94.97 rhino.acme.com # source server
# 38.25.63.10 x.acme.com # x client host
74.208.105.171 gs.apple.com
Thanks a bunch for taking your time!