I've tried everything, tiny umbrella doesn't work, deleting the host code line for apple didn't work, and dfu mode doesn't work. Every time I try anything I still get that error. Running iOS 5.0.1 and I want to restore it to a clean slate.
If you are trying to put iOS 5.0.1 back on the iPad - there's your issue. Unless you have saved blobs, the only iOS you can put on that iPad1 is iOS 5.1.1.
So, maybe try again with the "approved" (by Apple) iOS?
Marilyn is absolutely right, and since 5.1.1 is easily jailbreakable and a more stable IOS for the iPad1 than the 5.0.x line, then you should be restoring that.