Sorry, Judy's solution is not the solution.
My husband and I both have iphone 5's. We both have Dell Laptops running XP Pro SP3. Neither of us use iCloud for syncing. (We only use it for FMI app.) We both have Outlook 2003. We've been able to easily sync our phones via iTunes (plugged in via cable) with no problems...UNTIL we both upgraded to the latest iOS 7.1.2. Something was changed in there to create the issue. Immediately prior to the latest iOS upgrade, we could and did successfully sync all contacts, the calendar, notes with Outlook 2003. Immediately after the iOS upgrade, we get the error message, and information is not transferred.
He also upgraded to the latest iTunes to see if that would fix things. (He was running iTunes 11.2.2.3. I am running that, right now.) He upgraded to iTunes 11.3. Nothing changed. Uninstall and install iTunes did not fix anything, either.
What was changed in the latest iOS update to create the problem? Is it possible to go back to the previous iOS, somehow? (Back-ups seem to be successful. That means the back-up file has been overwritten with the current iOS in there. So, we're out of luck on that one.) Suggestions?