SET UP NEW IPHONE LOOP!!! PLEASE HELP!

Hey everyone...
Well i have an iPhone with major issues...
It doesn't sync and apps crash etc...
Anyway Apple are sending me out a new iPhone seen as though this has a list of things wrong with it...
Anyway thats fine... Today i thought it would be an idea to back up everything so thats exactly what i did... just before i did this my iPhone froze So i thought i'de plug it into iTunes to restore it.
While doing this i noticed the Set Up new iPhone pop up window - i ignored it...
ANyway so i restored everything etc...
I got a call answered it and everything was normal.
I went to Sync when i was stuck in a continuous loop of "Set up New iPhone"
After doing it 4 times i eventually gave up and rang apple...
They couldn't really diagnose anything...
If this has happened to anyone please let me know as i have alot of data on that phone which i'de rather not loose...
Thanks.... =]
Have a good night... =]
Carl =]

Disk Utility MAY or MAY NOT help
It depends on a few things.
1. Is the disk over heating, IF so then you need to wait for it to cool off.
2. If its a bad cable (using a USB 1.1 cable with a 2.0 drive, broken internally, etc) then you may want to try a new cable.
3. If its a file system issue then Disk Repair may fix it but if its serious then you may want to use DiskWarrior.
DiskWarrior has saved my drive several times!
I would recommend trying the following in this order.

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