Firstly I'd like to thank anyone who takes the time to reading my question and takes the time to point me in the right direction. It is invaluable to me as I have spent hours trying to figure this out on my own. I have an iPhone 3G on 3.1.3 that is currently working in my 2007 Macbook running iTunes 8.0 with no issues. When I connect it syncs, allows me remove and add media and can restore from an earlier back up at no problem. I just purchased a new 2011 Macbook Pro and uninstalled iTunes 10.1 and installed version 8.0 and expected similar results - however it just tells me it can't recognize the phone and to restore it to factory settings. Why!?