This error code can be found when the zune account has not properly been set up.
Please, sign into www.zune.net, update your contact information, set the country is was not already been se and accept the terms of service if you are asked to.
Remember to sign in with the same Windows Live Id you have on your phone (settings> email+accounts, Windows Live. It is the only one that if you tap and hold if offers you the option to sync it and not to delete it).
After that, turn off the phone for 10 seconds, then go to settings> email+account>tap and hold the Windows Live Id and tad synchronize.