I have all permissions organized and a single backup in the correct folder. I have 23 GB of space. I have an Iphone 4. I recently synced it and updated to the latest IOS. My contacts were lost, and I knew that Restoring from a backup could fix that and return my old contacts. However, I am receiving a seemingly common error message that the backup could not be saved. My USB is fine, my "Lockdown" folder is fixed according to the specifications on the apple support site. Please help.
I would advise attempting to backup all your data using DiskAid (You can download it for free on an educational license).
The best course of action that might be to restore in iTunes and then restore your backup from DiskAid.
This may also be a software issue, you can attempt getting your iPhone into DFU Mode in order to restore not only your contects...etc... but also reinstall iOS (as it may have installed incorrectly).
As it is stated at this webpage:
Then you should be able to click the restore button, and restore correctly.
Hope this helps.