This was my experience.. updated mac, updated itunes, took off photos and music, error during first sync attempt, sync prompted again, back up completed to mac fine.. BUT gave me (-1) when restoring to phone after ios5 complete. Phone might as well have been straight out of the box. Mac had no record of a back up. Took it to apple, nice guy spent AGES messing around with the mac trying to dig up the back up or anything close to. He managed to scrape up A-T of my phone list which I had from a year ago, the last time I synced the phone!!
Other than that we have presumed the back up to be corrupted. So we deleted the manky back up and I'm gonna have to start again but with A-T at least. I'm not happy about it - I lost my mum's messages and voicemails from just before she died 2 years ago. I have nothing against the guy at the genius bar - he did everything he could think of and totally racked his brains over it. But I really wish apple could do something with their sync procedure, it's way too risky and gives us all.. 'the fear' ... whenever we want an update!
The guy at the genius bar says whoever thought it to be a hardware issue hasn't seen this problem before. It's a software issue entirely and everytime he has seen it it has been due to an interrupted or failed sync attempt (the part where your info is backed to mac).
Congratulations to all those who got theirs to work more simply. But there's not enough rice in this world that could have de-humidified my wet behind the ears phone! Good luck guys!