I have new 4s. Backed up old 3G on iTunes, attempted to sync new 4s to iTunes and keep getting message that new iphone does not have 10.5 but have downloaded on all Mac devices.  How do I get old settings to my new 4s?

I purchased the new iPhone 4S tonight.  Previously used the 3G.  Synced the 3G, plugged in the new 4S and got message could new iPhone did not have 10.5 and to go to iTunes and download.  Did that on both new 4S and made sure iTunes on Mac had 10.5.  Tried again.  Got same message.  Cannot sync new 4S to iTunes and restore to move my photos and contacts to new 4S.  What can I do?

thanks but how do i recover i have logged in to itunes and connected new phone and none of my old library is there ?
Do i need to sync the old 4 to have all apps and music in my account
Sorry not to good on the itunes thing
thanks

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