IPhone Looping in iTunes - asking to restore

I tried to dock my iPhone to my Mac and found that it continually says:
An iPhone has been previously synced with this computer.
It gives me 2 options:
1. Set up as a new iPhone
2. Restore from the backup
I choose option 2, the iPhone indicates it is restoring then it reboots. After it comes backup and mounts in iTunes, I get the same messages all over again.
Apparently an infinite loop
Anyone else have this issue?

I know what to do:
Take iPhone out of cradle
Reset it (Home+Sleep/Wake)
Go to Prefs, iPhone, Erase Backup History (in iTunes)
Re-sync and choose create a new backup
That should do it. This happened to me too

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