Go to
Download iOS Firmware and download a 4.1 firmware file for your device and then in iTunes hold down shift and hit restore and then select the 4.1 firmware file you downloaded.
Is it advisable to do a DFU before the shift + restore?
As far as blocking Apple's verification severs in my hosts file, would that be because I followed an "edit host" directive which later someone said here, was not a good idea. So how can I correct that? I think I read somewhere that deleting any lines with "Apple" included would solve those types of problems.