iPhone 5 Prototype Video
As you can see in the video, the new dock connector and non-released iOS Software is the only thing that didn't allow this phone to fully function, however it is a working iPhone 5. And as you can tell, the Connect to iTunes image appears when it is turned on. The New iPhone is set to release in the near future. The rumoured release date is Sept 23, with an apple event scheduled for Sept 12 to be set to unveil the device and an updated iPod Touch with an A5 processor manufactured using the same technology as in the iPad 2 Rev A to save battery consumption by 30% or higher and 512mb of ram.
The above link does no longer work.
Here it is a working one.