Plug iPad into PC first time

My wife has had an iPad for a few months. She also has an iPhone, and uses a windows laptop with XP.

The iPhone has been backed up on the laptop using iTunes.

The iPad has never been plugged into the laptop.

Now, she has some photos on the laptop she would like to transfer to the iPad. I plugged the iPad into the laptop and iTunes says something like "welcome to your new iPad - what do you want to do (a) set up your new iPad or (b) restore from backup". It references the iPhone backup.

My question is, what will happen if I select "Set up your new iPad"? - will it wipe the iPad? It's been working just fine, and she has bought some apps for it that she wouldn't want to lose.

All I really want to do is copy about 50 photos over, you'd think that would be easy?

thanks