Iphone 3GS Updated to IOS5, but Contacts from another phone / instance applied to the phone after update!!!

Hi
I updated my Iphone 4 to the latest IOS5 software and selected to backup to the cloud. This worked a treat. I did the same on my IPAD and this worked to,
I then updated my wifes Iphone 3GS to the same IOS5 software. It said it was backing up the phone and it proceeded to continue with the download. Once the loading of the software was complete, I then went through the process of setting up the iCloud settings on the 3GS phone and selected to merge the data and used my Apple Account, as we share this account.
Now complete the contacts are incorrect, as they phone now has all my contacts on it and my wife's are missing / have been overwritten. This is a major issue as I cannot seem to recover these.
I can plug the phone back into ITunes and run a restore but its telling me to restore to factory settings. Where is the backup iTunes did as part of the software update and or how can I recover the contacts that are relevant to my wifes phone and not mine as she cannot use her phone with my contacts.
I have since turned the contacts off on her phone and removed these so they do not appear and sync with the cloud, but I depserately need to get these back as they are required for her work.
Many thanks
Stuart

Having the exact same problem. Just got an iPhone 3G S for christmas, and i can't use it.
Maybe try down-grading it so you can at least add contacts and change settings? i havent done it but you could try.

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