Why does iTunes want to restore my iDevice??

I plugged my iPhone (3G 4.1.3) into iTunes to sync some stuff and it takes me to the screen that gives me the option to restore from backup or setup as a new phone. The device is working just fine. The only thing different is when I plugged it into my computer, Windows didn't make the USB connected sound and didn't pop up the usual action window. iTunes obviously sees the phone tho. I really don't wanna restore and then rejailbreak but is there something I can here?

Could it be that iTunes is recognizing it as a new device? Sounds like driver issues

I don't know why iTunes would identify it as new...it's been synced to this computer before. I even rebooted the computer and device and tried again with same results.

EDIT: I was incorrect when I said it doesn't make the USB connect sound...I had the audio muted. Also, on the same screen where it wants to restore or set up as new, it says this device was last synced on 7/20/2011 so it does recognize it as not being new...

Try another USB port

I did. I just let it restore.