IPhone 4s :: OS X Mavericks (10.9.2) / Error Message - Computer Not Setup To Sync

I have a new replacement 4s. I am trying to set it up. I hate iCloud but need it to sync my calendar to my phone. I mistakenly set it up to sync Contacts too and found out it synced ALL contacts which I do NOT want. I used to use iTunes to sync only selected contact folders (one I call Sync). Others are too sensitive to have on my phone. So I turned off "where is my iPhone", and turned off "Contacts" on iCloud. It said it would delete all my contacts on my phone the next time I sync (using iTunes). So I try to sync my Contacts using iTunes and find that under "Info" on the device tabs my only possible selection is ALL contacts with the "Selected" button greyed out. But even leaving all checked, I get the message "iTunes cannot sync information with the iPhone because syncing has been disabled on this computer (my Mac). Do you want to enable syncing?" I hit the button "Enable syncing" and I get the error message "Syncing cannot be enabled on this computer" with "Override" and "OK" my choices. If I select "OK" I get the error message "iTunes could not sync information to the iPhone (Name) because a sync session could not be started". I can sync my music and my apps but get this stupid message otherwise.

Info:
MacBook
Pro, OS X Mavericks (10.9.2), Trackpad pointer