IPhone Stuck on 'Preparing Update'?

I have an iPhone 4 and want to upgrade to 7.1. The update is on the iPhone and is downloaded, but is stuck on 'Preparing Update'.
I've rebooted the iPhone and nothing has changed.

Might also mention that I'm behind my college's Wi-Fi and it is on a proxy- is an internet connection with no proxy required to complete the update?

Don't worry! They have just rolled out this new iOS 7.1 update so may be they are facing some server load. BTW your iPhone 4 will become very speedy after this update. Read this: http://www.gizmobic.com/ios-7-1-iphone-speed-increase/

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