set up a new user and was able to sync the phone to get 4.3.5. then tried to sync with the normal user. same "unable to save backup message". I've read it could be an issue with picture syncing. when i click on the pic tab and chose sync to aperture or iphoto i notice that the libraries for eitehr application do not seem to be updated for about a month or two..and actually to about the date listed near my latest backup under file-pref-devices. so it seems itunes isn't talking to my iphoto or aperture programs. no idea what this means, but thats why i'm here.
I'm obviously the outlier that got killed with the lion update...should ahve bought a lottery ticket that day.