I can't install iTunes 10.7 without updating MAC OS, not sure which version to install

I just bought the iPhone 5, trying to synch with iTunes to get settings, contacts, photos etc. installed. Got a message that iTunes version 10.7 or later is required. Went to www.itunes.com and downloaded the update, got a message that it requires MAC OSX version 10.6.8 or later. My MAC (Intel based) is currently running 10.5.8. When I select Software Update, it tells me that all software is up to date. I'm not sure what to do next. After some searching, I found:
Mac OS X 10.6.8 Update Combo v1.1
Is this ok to install on my machine?

There's no fine print to it. In fact, the print is just as big as everything else on the page...
Look here: http://www.apple.com/iphone/specs.html
Under System Requirements:
Apple ID (required for some features)
Internet access5
Syncing with iTunes on a Mac or PC requires:
Mac: OS X v10.6.8 or later
PC: Windows 7; Windows Vista; or Windows XP Home or Professional with Service Pack 3 or later
iTunes 10.7 or later (free download from www.itunes.com/download)

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