Once i get my iPhone 5, how do i transfer all the music from my iPhone 4 to the new one? Also how will i be able to transfer my contacts?
Sync and backup your current iphone to iTunes and then when you are setting up the new one, do "restore from backup" and sync with iTunes. iCloud does store a lot of the stuff for you but only up to 5GB if you haven't paid for more. Your contact and calendar and stuff like that will automatically show up if they are synced to iCloud. I always sync my pictures and media to iTunes because iCloud free doesn't have enough space. See the below.
iOS: Transferring information from your current iPhone, iPad, or iPod touch to a new device
I don't use iCloud, only iTunes. I have an iPhone 4 now, but I haven't updated to iOS 6. Do I need to do that first before using the "backup/restore from backup" method? Would it "restore" my new iPhone 5 to iOS 5, or does it just do content?
So music not purchased from iTunes (i.e. ripped cds) cannot be backed up?