Problem updating to iOS 5

[KingofStrangers]

I've tried updating my iPhone to iOS5, but iTunes is telling me that I don't have enough space to backup my phone. Apparently I need almost 27 GB (most of that being apps), and there's no way I can make that much room on the computer. Otherwise, if I chose to continue anyway, it would "result in a loss of all media".

I don't have a lot of music or photos that I desperately need backed up, but I'd rather not lose them. Plus, I have a lot of apps that I don't want to lose. Would it be possible to back everything up to an external drive for the update?

 

[Thnkdifferent]

Upgrade your Hard Drive or back up and delete info to make room for the update.

 

[KingofStrangers]

I considered upgrading my hard drive, but I was hoping an external drive would work since it would be a lot easier. I just don't know if I can get iTunes to back up to on, upgrade, and restore everything from it.

At the very least I'd like to know what'll happen to my apps. If I go ahead and let it wipe all the data from my phone, will I be able to sync all of my apps again later? I imagine I'll lose any progress or settings I had for them, but will I have any problems putting them back on my phone after?