I just want to follow-up to post a little bit of specific directions about finding your backups, in case anyone needs them:
On a Mac your backups are in /Users/<your username>/Library/Application Support/MobileSync/Backup
(Open Finder, hold the Option key, and select "Library" from the Go menu to get to your user's Library folder.)
In Windows, the fastest way to get to your backup folders is:
- (Windows 7 and below) Start -> Run -> type %appdata% (with the percents) and press return.
- (Windows 8) Search -> type %appdata% (with the percents) and press return.
From Application Data, navigate to Apple Computer, Inc. -> MobileSync -> Backup.
You can match your device identifier with the backup folder name by clicking on the Serial Number field in iTunes (which will switch it to your device identifier.)
I know this thread is about a corrupt backup blocking updating the backup process, but in case anyone is having a corrupt backup blocking a restore (a much scarier problem,) and you don't have the original device/data to make a new backup, I hope you'll take a look at the information I've been writing about fixing backups on my company's blog:
http://deciphertools.com/blog/2014_07_11_itunes_could_not_restore_backup_corrupt /
We have been looking at fixing the corrupted backups, which may be helpful for you!
(Note: As I mentioned, I work for the company I'm linking to above, so I stand to benefit, either financially or otherwise, from the links I'm recommending.)