Never connected Iphone to computer 3G

Ive never connected my iphone to my computer after two years of owning it. I know, lame. Anyway I would like to update to the newest software. However I cannot sync the phone to itunes ( it says iTunes cannot read the contents of the iPhone
xxxs iPhone. Go to the Summary tab in iPhone preferences and click Restore
to restore this iPhone to the factory settings.) How do I go about sync the phone w/o restoring, thus deleted my contacts, apps, etc?
Message was edited by: badegg82
ThinkPad Windows XP