The iPhone "iPhone" cannot be used because it requires iTunes version 10.5 or later

I just purchased the iphone 4S and want to connect to itunes to move my backup onto the new phone but when I plug the new one in it says - The iPhone "iphone" cannot be used because it requires itunes version 10.5 or later. The iphone 4S has the latest everthing??? Why am I not able to connect to itunes?
My MAC is app. 2yrs old.

You need to update your version of iTunes. Ios5 is only supported by iTunes 10.5 meaning, an older version of iTunes is not compatible. You can download the newest version free via iTunes or apple .com but I would recommend going to the top left cornner of you screen, click the apple and choose "software update". iTunes 10.5 was an update that came out earlier this week and by doing this you can see if any thing else needs updating and it will do it automatically.

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