New iphone cant use it, empty itunes

I'm trying to set up the phone for the very first time, after selecting the language and country it tells me i need to connect to itunes so i did but nothing happens an empty screen pops with the icon showing the iphone is connected but nothing else, on the iphone it says connected to itunes.
Because of that i tryed the wireless version but that gives an error "We're sorry, we are unable to ...".
it's a brand new phone and a christmas gift it ***** i can't use it.

Run the Software Update pane of System Preferences or click here.
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