iPhone wont restore (Cannot find a solution)

So my iPhone lost all off its contacts somehow and I would like to restore it. I tried to restore on itunes but it says "this device is not eligible for this build" even though it is the same firmware in my backup as on my phone (5.1.1.). I have never updated from 5.1.1. or jailbroke my phone. In addition, I have software Leopard 10.5.8, and the latest version of itunes (10.6). I have tried putting the # in front of the local host, as seen here http://support.apple.com/kb/TS4451 but that did not work. When I option-click and navigate to my backups, I cannot select it. It shows the folder of the backup I would like but then when I click open, it just shows a ton of files.

Any help would be greatly appreciated, it is not good without contacts!!! 🙂