STEP 1: Delete iTunes from your computer. Also make sure you remove the cache(open itunes then press edit wich is located on the tool bar and then click on preferences and then go to advanced and click on reset warrnings and reset cache).
then go to your hard disk and go to program files and delete folder named itunes.
Note: If you have any libraries or locally cached data that you want to keep, temporarily store them somewhere until you get the situation fixed.
STEP 2: Once it is completely deleted, download iTunes 11.1 from Apple servers.
STEP 3: Download iTunes 11.1 from here.
STEP 4: Now connect your iPhone, iPad or iPod touch to computer.
STEP 5: Click “restore”, it should present you with a notification saying a new version is available.
STEP 6: Simply Click download and install, and sit back and relax.
The process should be completed and your error 1669 should be fixed.