Tried to update the dinosaur iPhone 4, doesn't go past Connect to iTunes

I've got an older iPhone 4, and up until today it had iOS 4.2.1. Yikes, I know! I backed up my contacts and pictures to my computer before I did anything.

First thing I did was update iTunes since it was outdated as well. I plugged my iPhone in the usb port and did the update via iTunes. The update did its thing then gave me the option to use a backup.

At that time I had the Hello screen, wifi selection and the works. It prompted me to start like a new iPhone, restore using iCloud, or restore using iTunes. I chose iTunes because I never used iCloud before. After selecting the proper backup, iTunes says everything synced, has the current iOS as 7.1.2, and I can view how the screen looks via Apps on the top bar.

Seems like everything went smooth, yet the screen on my iPhone doesn't change. I can turn it off/on, touchscreen works when I swipe at the Hello screen, but it still says "Connect to iTunes."

If I try to manually restore backup, it says I need to go on my phone and turn off something related to Find My iPhone. That's difficult to do since I can't access it.

I'm currently trying my 2nd restore, after putting it in recovery mode, in hopes that it works this time. I haven't received any error messages, yet. Edit: It did the same as before, still on the Connect to iTunes screen.

I'm curious as to if I restore it like a new iPhone, would I be able to use my current backups if it goes past the Connect to iTunes screen?

Does anyone have any suggestions on what to do, or how to get it off this dang connect to iTunes screen?

I do appreciate any help, thanks!