Thanks! That is exactly what the Verizon rep had me do over the phone. I tried Verizon chat and was cut off three times! In the end I called and they talked me through the update/restore procedure. Funnily enough, iTunes said that my phone could not be updated and that I had to restore, yet when I followed the steps my phone emerged with everything (it appears) in tact.
Thanks for you help! Hopefully others will see this when facing a similar problem.
Thanks for responding back. Glad you seem good to go. Happy New Year and happy to help!