Unable to update to iOS5

Hi,
I received my iPad 2 yesterday, after going through the setup and registration i was prompted by iTunes to update to iOS 5. The current OS is version is 4.3.5
After clicking update, i get this message box:
http://i43.tinypic.com/28lgfvb.jpg
After clicking continue, i am presented with this message box:
http://i39.tinypic.com/2rcv4fc.jpg
I click continue and i get this error message:
http://i43.tinypic.com/2vc9g1j.jpg
Anyone have any ideas where im going wrong?

OK. These links have suggestions on how to fix this. I hope one of them works. I've tried to get them in order starting with the most likely
Restarting the Mobile Device Service
http://support.apple.com/kb/TS1567
General support on failed backup
http://support.apple.com/kb/ts2529
A discussion here with a number of possible solutions
https://discussions.apple.com/thread/2753606?start=0&tstart=0
Blog post from soneoen who had the same issue
http://jamieforrest.com/2010/06/18/itunes-could-not-backup-the-iphone-iphone-bec ause-the-backup-session-failed/

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