iPhone backup exists but wont show in restore window .oy iPhone 4S

iPhone needed repair or replacement (volume buttons quit working under warranty), so I backed it up on 12/27 @ 11:27 am. in itunes.  Took it to the Apple store, had to get a replacement.  Deactivated the old phone, activated a new iPhone in the cellular account...in the store.  Came home, plugged it into itunes and the "Set up your iphone" window shows "set up as new iphone" or "restore from backup of : (drop down box).

In the drop down box is only a backup of my daughters ipod.  no other choices appear. 

In itunes  "edit>preferences>devices" the exact iphone backup file is there as date stamped above, also this backup file is shown in Windows file explorer.

So I copied that iPhone backup file, saved it in another folder for safety.

I have since then spent the same countless non productive hours cruising the net and this forum learning about things I have no use for (yet) and getting no answer to the question.....the backup exists but itunes wont show it as a restore option for this new phone.

I tried rename the phone searching, clicking and unclicking options in sync types, etc......still this backup wont show as an option to load onto this new phone. 

The media content and apps are not of concern, its the 200+ contacts that we need to restore.

Anyone know what this carbon based form is doing wrong?

Thanks for the help and happy new years!