HALF-SOLUTION!!!! (Restoring only, basically.)
Restore the phone via iCloud.com
1. Go to iCloud.com , and log in.
2. If you want a back up, make sure you back it up to itunes now!
3. Now back to iCloud.com - select the device you want. Press "Erase iPhone" (or iPad, iPod whatever).
You will go through a few steps. Skip the phone number and leave a message, as it isn't lost. Your phone will be restored. No need for plugging in!
4. IMPORTANT: Just set it up as usual. Language, country blah. But then you'll get to a step where it says something like "This iPhone was erased with iCloud. Log in with the Apple ID you used to erase it". In this case, my Dad's. So please do that. Later on, the phone will ask for an Apple ID to be used for the phone. I put my own one as I didn't want my dads!!!! Lol....
5. Plug into iTunes and back-up.
As for updating, I'm still on 7.0.2,,, it ain't working on my phone or itunes!! :(