I updated to iOS 7 and then updated my iTunes.

Now I seem unable to run iTunes or conect my iPhone as my operaing system is too old?

You need to restore the iOS software now because the update was corrupt.
iTunes: Restoring iOS software - Support - Apple
You may need to use recovery mode which is covered at the end of the kb article that I posted above, but here is the direct link to the instructions.
iOS: Unable to update or restore - Support - Apple

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