NEED HELP! Trying to backup my iPhone to iTunes and transfer to another iPhone with more storage.

About 2 months ago I bought a new iPhone 4 with 8gb of storage. I have since filled it up with Apps and App Data. A friend gave me his old iPhone 4 with 32gb of storage. So, I want to backup my 8gb iPhone to iTunes, have my carrier deactivate it, then activate the 32gb iPhone my friend gave me, move my number to it, and then restore my 8gb backup to the 32gb iphone.
Here's the rub ...
Since I have had my 8gb iPhone, I have never synced it with iTunes. I upgraded the OS to v.6 over the air and downloaded all my apps the same way. I spent a lot of time setting up my preferences and personalization’s directly on the phone itself.
So, now that I want to back it up, when I connect it to iTunes, I get the "Welcome to Your New iPhone" screen with only two choices; one “Set up as new iPhone”, or two “Restore from this backup:” (Which currently reflects my wife’s iPhone 4 backup). ... I want to do neither ...
I just want to plug it in, and then back it up as mentioned earlier, “without” wiping it by setting up as new or restoring my wife’s phone to it.
Is there a way to do this in iTunes?
Thanks for all and any help! T.

See Recover your iTunes library from your iPod or iOS device.
If I recall "set up as new phone" shouldn't change anything on it, it just tells iTunes that you don't want to restore a backup of an older device to it. That said I haven't been there often enough to be absolutely sure.
Sometimes it is a matter of timing... If your question drifts off the first page or two before someone who has a useful suggestion sees it then it can get missed entirely. Yesterday in particular was bad for anyone looking for immediate help but it looks like things are running more smoothly now.
tt2

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