IPhone constantly wants to 'set up' and restore a backup

Hi all.  Have installed the iOS 5  in my iPhone and after restoring a backup so that my music appears again, whenever I connect said iPhone to iTunes all I ever get now is
SET UP YOUR iPHONE
This Computer has previously been synced with an iPhone or another iOS device
Then I get the option of 'Set up as New iPhone'
Or, 'Restore from the backup of....'   Then there is a dropdown menu of all the backups there available...  ALL of which I've been through...!!!
Anyone help?  I've restored this phone now like 8 or 9 times and still everytime I reconnect it, all it wants to do is re set it up..>!   ARRRRGGGHHHHHHHHHH!!!

Ah ha, I saw a post on a different, non-Apple forum about how to fix my problem for a similar but not the same situation, but same error message, and the suggestion was to click on Set up as a new iPhone, then uplug from my Mac right after clicking OK.  I was worried that I'd have to re-set up my iPhone from a factory reset.  But the poster who gave this suggestion said it wouldn't do the factory reset if I uplugged quickly. 
However, it didn't work for me, so I tried it again and noticed that a message appeared that said I had an unresolved issue with my settings that I had to correct.  The setting was for making apps update automatically, which I didn't not want it to do.  I unclicked the box and pressed continue and voila, my iTunes was back to where it needed to be. 
If that was the problem, then Apple shouldn't hide it under the deceptive, "Set up as new iPhone" which gives one the impression that that is the option of last resort because it will reset the phone to factory settings, losing all photos, music, playlists, apps, etc that were not backed up.

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