My iPhone won't connect to iTunes?

I'm trapped in the stone age and I have a iPhone 3GS. Ever since I got this fossil and tried plugging it into my computer, it says "iTunes needs to be updated". I have the most updated version of iTunes yet it still says this every single time I plug it into my laptop. Any help?

Added (1). Also, this same laptop will connect to my iPod, just not my iPhone.

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