Trying to set up my new iphone 5s from the cloud

Im trying to set up my new iphone 5s by restoring from the cloud. When I get to the "choose backup" screen, i try to choose my latest back up, but nothing happens. the wring is in gray and nothing happens when I touch it. the bottum of the screen says "No icoud backups are compatibel with the version of iOS(7.0.4) on this iphone) Please help. I can't use my phone and I need to make some calls.

It sounds as if your new iPhone has iOS 7.0.4, but the backup was performed using iOS 7.1.  if that is the case, here is how to solve this:
1.  Upgrade your new iPhone to iOS 7.1.  If it cannot yet get to Setitings, set is up as a new iPhone.  Then do Settings > General > Software Update.
2.  Prepare to restore the iCloud backup.  The way to do this is to now do Settings > Gerneral > Reset > Erase all content and settings
3.  Restore the iCloud Backup.  You will now be directed through the "Hello", set up WiFi, enter your Apple ID, and choose a backup.
This will only work if your old backup used the same telephone number, cellular carrier, and Apple ID of the new iPhone.

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