Upgrading OS 10.3.9 to use iPhone

I went to the local Apple Store to get on the iPhone bandwagon. I specifically asked the salesperson if it would work on 10.3.9. He asked if I had the most recent version of iTunes. I said I did--7.5. He said Panther would work no problem. He is a dolt. It did not work and it looks like I need to upgrade my OS to activate the phone. My question is whether or not I have the necessary specs on my current Mac to be able to upgrade to Leopard. I looked them up and all looks to be in good shape as I added RAM last year. But not being very technical, I feel like I always miss something and have to buy something more. Can an upgrade really be as simple as buying Leopard? Will that be all I need to get the iPhone working? Finally, having never updated an OS on an existing computer (I have always just bought a new Mac--their marketing works) will it just automatically update all my other programs (iPhoto, etc). Thanks for the expertise...

iPhone's system requirement is OS X 10.4.10 or higher. Your computer has sufficient specs for both Tiger and Leopard although you should have more RAM for either than what you already have.
A new OS will not update any of the iLife apps or iWork apps. Those must be purchased separately.
Updating can be relatively painless if you do it right.
Repairing the Hard Drive and Permissions
Boot from your OS X Installer disc. After the installer loads select your language and click on the Continue button. When the menu bar appears select Disk Utility from the Installer menu (Utilities menu for Tiger.) After DU loads select your hard drive entry (mfgr.'s ID and drive size) from the the left side list. In the DU status area you will see an entry for the S.M.A.R.T. status of the hard drive. If it does not say "Verified" then the hard drive is failing or failed. (SMART status is not reported on external Firewire or USB drives.) If the drive is "Verified" then select your OS X volume from the list on the left (sub-entry below the drive entry,) click on the First Aid tab, then click on the Repair Disk button. If DU reports any errors that have been fixed, then re-run Repair Disk until no errors are reported. If no errors are reported click on the Repair Permissions button. Wait until the operation completes, then quit DU and return to the installer. Now shutdown the computer for a couple of minutes and then restart normally.
If DU reports errors it cannot fix, then you will need Disk Warrior (4.0 for Tiger) and/or TechTool Pro (4.5.2 for Tiger) to repair the drive. If you don't have either of them or if neither of them can fix the drive, then you will need to reformat the drive and reinstall OS X.
Basic Backup
Get an external Firewire drive at least equal in size to the internal hard drive and make (and maintain) a bootable clone/backup. You can make a bootable clone using the Restore option of Disk Utility. You can also make and maintain clones with good backup software. My personal recommendations are (order is not significant):
1. Retrospect Desktop (Commercial - not yet universal binary)
2. Synchronize! Pro X (Commercial)
3. Synk (Backup, Standard, or Pro)
4. Deja Vu (Shareware)
5. PsynchX 2.1.1 and RsyncX 2.1 (Freeware)
6. Carbon Copy Cloner (Freeware - 3.0 is a Universal Binary)
7. SuperDuper! (Commercial)
8. Data Backup
The following utilities can also be used for backup, but cannot create bootable clones:
1. Backup (requires a .Mac account with Apple both to get the software and to use it.)
2. Toast
3. Impression
4. arRSync
Apple's Backup is a full backup tool capable of also backing up across multiple media such as CD/DVD. However, it cannot create bootable backups. It is primarily an "archiving" utility as are the other two.
Impression and Toast are disk image based backups, only. Particularly useful if you need to backup to CD/DVD across multiple media.
Visit The XLab FAQs and read the FAQs on maintenance, optimization, virus protection, and backup and restore. Also read How to Back Up and Restore Your Files.
How to Perform an Archive and Install
1. Be sure to use Disk Utility first to repair the disk before performing the Archive and Install.
2. Do not proceed with an Archive and Install if DU reports errors it cannot fix. In that case use Disk Warrior and/or TechTool Pro to repair the hard drive. If neither can repair the drive, then you will have to erase the drive and reinstall from scratch.
3. Boot from the OS X Installer disc. After the installer loads select your language and click on the Continue button. When you reach the screen to select a destination drive click once on the destination drive then click on the Option button. Select the Archive and Install option. You have an option to preserve users and network preferences. Only select this option if you are sure you have no corrupted files in your user accounts. Otherwise leave this option unchecked. Click on the OK button and continue with the OS X Installation.
4. Upon completion of the Archive and Install you will have a Previous System Folder in the root directory. You should retain the PSF until you are sure you do not need to manually transfer any items from the PSF to your newly installed system.
5. After moving any items you want to keep from the PSF you should delete it. You can back it up if you prefer, but you must delete it from the hard drive.
6. You can now download a Combo Updater directly from Apple's download site to update your new system to the desired version as well as install any security or other updates. You can also do this using Software Update.
And last but not least read the instructions in the various ReadMe files that you will find on the Installer disc before running the installer.

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