new itunes - old phone

I recently updated Itunes but since the updater didn't work I had to reinstall it. I am trying to sync a phone to the new installation from the old one but it does not seem to be editable. There is no 'sync' option although it does know that it is there.

Do I have to wipe the phone in order to use it or is there another way? What about purchased songs ? are they all lsot?