How do I restore to factory setting AND retain the tunes and apps on the phone or get them synched?

I'm getting the message "itunes cannot read the contents of the iphone" and asking me to restore to factory settings when attaching to PC. I have songs downloaded from itunes on my PC, and songs and apps downloaded to the iPhone from iTunes too. How do I restore to factory setting AND retain the tunes and apps on the phone or get them synched? The iPhone is working fine
iPhone4 v4.2.1 (8C148) (can't update this till above sorted)
iTunes 10.2.2.12
Basically, if there is some way of downloading a 2nd copy of tunes/apps already purchased I can resolve my issue, but I don't know if this can be done. Ican't find a FAQ on this. Thanks in advance

See  Erase your device  Here  >  http://support.apple.com/kb/HT4137
Go to Settings > General > Reset > Erase all content and settings
Also... See the wjosten post here...
https://discussions.apple.com/message/20294697

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